Billionaire investor Ron Baron has had high conviction in Elon Musk for years. The investor, who owns stakes in Tesla Inc (NASDAQ:TSLA) , SpaceX and xAI, may have even more conviction in Musk for the future.Ron Baron Up $12 to $13 Billion With Musk  An investment in Tesla back in 2014 has made an incredible return for Baron and Baron Capital, the fund that he founded. Investments in SpaceX also produced strong returns, adding to the impact that Musk has had on the investor and his fund.In an interview with ...

Core Insights - Tesla reported third-quarter revenue of $28.095 billion, a 12% year-over-year increase, surpassing the consensus estimate of $26.239 billion, marking the first revenue beat after four consecutive misses [1] - Automotive revenue reached $21.21 billion, up 6% year-over-year, driven by delivery increases, while earnings per share were 50 cents, missing the consensus estimate of 54 cents [2] - Operating income fell 40% year-over-year to $1.6 billion, with an operating margin of 5.8%, despite record deliveries of 497,099 vehicles and production of 447,450 vehicles [3] Financial Performance - The company reported a significant increase in digital assets, totaling $1.315 billion, primarily from Bitcoin holdings, up from $1.235 billion in the previous quarter [4] - Tesla ended the quarter with $41.6 billion in cash, indicating strong liquidity [4] Future Outlook - Tesla plans to launch new products, including the Model YL, Model Y Performance, and affordable versions of Model 3 and Model Y, aiming to leverage its scale and cost structure to navigate market dynamics [5] - The company is focused on long-term growth, with plans for volume production of the Cybercab, Tesla Semi, and Megapack 3 scheduled for 2026, and the Optimus Bot's production lines being installed [6] Market Reaction - Following the earnings report, Tesla's stock declined by 1.1% to $434.20 in after-hours trading, within a 52-week trading range of $212.11 to $488.54 [7]

Core Viewpoint - Tesla Inc. has received an upgrade from Baird analyst Ben Kallo, who raised the stock rating from Neutral to Outperform and increased the price target from $320 to $548 following the announcement of a new pay package for CEO Elon Musk, which is seen as beneficial for shareholders [1][2]. Company Performance and Future Outlook - Despite setbacks in Tesla's vehicle segment, investor focus is shifting towards the company's long-term initiatives and future growth potential [2]. - Kallo suggests that Tesla is positioned as a leader in the AI sector, indicating a potential "physical AI inflection ahead" [3]. - The new pay package for Musk includes ambitious goals that create incentives for both Musk and the company over the next decade [3][4]. Pay Package and Market Cap Projections - The pay package milestones are tied to Tesla's market cap, vehicle delivery goals, Full Self-Driving (FSD) subscriptions, Optimus Bot deliveries, robotaxi operations, and adjusted EBITDA [4]. - If Tesla meets the outlined milestones by 2035, Kallo estimates the market cap could exceed $5.5 trillion, with stock value projections ranging between $1,400 and $3,000 [5]. Key Catalysts and Events - Significant catalysts for Tesla's stock movement include the approval of Musk's pay package, advancements in the Optimus project, growth in the Tesla Energy business, the launch of the Tesla Semi, and the introduction of more affordable electric vehicles [5]. - The recent purchase of approximately $1 billion in Tesla stock by Musk is viewed as a positive indicator for the company's future [6].

Core Viewpoint - Tesla Inc. is expanding its ventures beyond electric vehicles, focusing on robotaxis, full self-driving (FSD) technology, and humanoid robots, which could significantly increase its future valuation [1][3]. Segment Summaries - **Robotaxi Expansion**: Tesla is expanding its robotaxi service beyond Austin, Texas, aiming to reach half of the U.S. population by year-end, although this is considered a stretch target. The initial launch in Texas exceeded expectations [4][3]. - **Full Self-Driving (FSD)**: Adoption rates for FSD have increased by 25% since the launch of FSD V.12 in North America. Tesla is also working on FSD approval in Europe and hopes to unblock the service in China [4][5]. - **Humanoid Robots**: The upcoming Optimus Bot is projected to have a significant impact, with a goal of producing one million units per year within five years. The valuation for humanoid robots is based on their use in manufacturing jobs, but potential applications in home and retail could increase their value significantly [5][6]. - **Valuation Estimates**: The analyst's price target for Tesla has been raised from $319 to $325, with an upside valuation suggesting a potential target of $413. Key segment valuations include: - Megapacks: $134.2 billion - Robotaxis: $649.2 billion - FSD: $185.6 billion - Humanoid Robots: $36.6 billion - Cars: $136.5 billion [7][9]. - **Market Performance**: Tesla's stock is currently down 1.5% to $320.83, with a year-to-date decline of 15.4% in 2025. The stock has traded between $182.00 and $488.54 over the past 52 weeks [8].