Investment tycoon Barron fancy touts Musk: Tesla's biggest risk is Musk's health

This article is from sina US stocks, Jinshi data integration report

Ron Baron, a 78-year-old founder of Barron Capital Management, an American billionaire investor, said Wednesday that he has made $6 billion on his investment in Tesla and plans to remain a shareholder for at least 10 years.

As of Wednesday, Barron's eponymous investment firm held nearly 6 million shares of Tesla stock, initially investing $380 million at an average cost of $43.07 per share.

Barron Capital disclosed on Wednesday that it has more than 400 investments in its portfolio and $58.9 billion in assets under management, generating $54 billion in profits for customers, of which $6 billion comes from Tesla.

In March, Barron predicted that Tesla stock price would reach $1,500 per share by 2024 and $2,000 in the U.S. stock over the next 10 years. Despite the above predictions, Barron sold 1.8 million shares of Tesla stock for the company's customers in March, a move he called "painful" but necessary to "reduce risk."

Although Barron Capital sold another 41,000 shares of Tesla stock this month, he remains very bullish on Tesla stock, calling Musk a hard-working, inspiring and "brilliant man." He said:

"When I first met Elon 10 years ago, I was skeptical that Tesla would succeed, and it wasn't until they started making the Model S that we started buying shares in the company."

Barron is also excited about Musk's SpaceX company. Earlier this month, SpaceX's valuation reached $100 billion. Barron said:

"If it wasn't for Elon Musk, there wouldn't have been an electric car. In fact, most people wouldn't be so curious about space if it wasn't for Elon Musk, and you probably wouldn't have gone into space like you do now, and the U.S. government should be more grateful for Musk's contribution. According to the data I got, the two companies that engineering students most want to go to after graduation are Tesla and SpaceX. ”

Barron said the main risk to Tesla's future is Musk's health. Barron says:

"Musk sleeps 5 hours a day, works 19 hours ... So in the short term, that's the risk. Despite lack of sleep, Musk is currently in good health. Hopefully he'll stay healthy for a long time, he has great plans. ”

Musk's hard work has made him the world's richest man recently, but in the face of the Biden administration's proposed "billionaire tax", Musk showed no mercy, and yesterday angrily denounced it on personal Twitter as "representing the beginning of a new movement of the Democratic Party to redistribute the wealth of the richest Americans."

Musk continued to tweet on Wednesday to criticize the Democratic Party's "billionaire tax" plan, saying that a tax on billionaires would only have a "small impact" on the repayment of U.S. Treasury bonds and that the focus should be on government spending.

Musk said on his personal Twitter on Wednesday that "spending is the real problem." The tweet also included a link to an online clock that estimates the size of the U.S. debt.

Musk said:

"The U.S. national debt is $28.9 trillion, which means that each U.S. taxpayer is subject to $229,000 in debt. Even a 100% rich man tax on all billionaires would be a drop in the bucket for that number, and the remaining debt would have to be repaid from the public, which is a simple arithmetic. So, spending is the real problem. ”

He also added:

"The U.S. federal debt as a percentage of GDP was 56 percent in 2000, it's 126 percent now, and it's climbing fast. ”

Musk is focused on a proposal written by Senate Finance Committee Chairman Ron Wyden that aims to tax tradable assets such as stocks held by about 700 billionaires, fund expanded health care and childcare services, and continue u.S. President Joe Biden's strengthened child tax credits.