Billionaire investment legend Ron Baron said Friday he expects Tesla Motors shares to "quadruple in five years."
Baron is betting on Tesla founder Elon Musk. "To do what he's done so far boggles the mind. To revolutionize the way you're making cars and spaceships at the same time." Musk is also the founder of SpaceX, a private company that makes rockets and spacecraft.
On CNBC's "Squawk Box," Baron acknowledged that Tesla stock is expensive based on current earnings and revenue. "But what you're betting on is this company can be much larger."
Running through his investment thesis, which he's touched on before, the Baron Capital chairman and CEO cited Tesla's sales projections for 50,000 vehicles this year, as many as 80,000 next year, and a half million by 2020.