Ron Baron believes Tesla

Billionaire investor, and CEO of Baron Capital, Ron Baron appeared on CNBC’s “Squawk Box” Wednesday morning to discuss his investments with Tesla (NASDAQ:TSLA) and CEO Elon Musk.

The billionaire stood by his optimistic outlook on Tesla, expecting the electric vehicle (EV) manufacturer to potentially grow as much as five times its current market value. He revealed that his firm has already made about 20 times its initial investment in Tesla since purchasing the EV stock in 2014, With Tesla accounting for 46% of Baron’s oldest and largest fund, Baron Partners Fund (BPTIX).

During the interview, Baron expressed his belief that Tesla’s market cap will significantly increase, saying “I think Tesla in the next seven years will be about four or five times as big as it is right now in the stock market.”

Despite his enthusiastic support of the electric vehicle company, Baron explained during the interview that he is unable to buy more Tesla shares due to his funds already being fully invested when the stock price soared.