Tesla investor Ron Baron still believes he can make 20 times his money

Key Points
  • Ron Baron has made about $150 million on Tesla.
  • Baron has about $500 million invested in the electric car maker.
Billionaire investor Ron Baron: We have a chance to make 20 times our money in Tesla

Ron Baron thinks he can make billions on Tesla despite criticism that the electric car maker is overvalued and may have trouble delivering on its ambitious plans.

The billionaire investor's firm has invested in Tesla for about three years, and has about a $500 million stake in the carmaker, Baron told CNBC's "Squawk Box" on Friday. He said the position has made about $150 million in profits.

Baron said it can yield about 20 times his initial investment over the next 10 to 15 years.

"People don't have that kind of horizon in investing, and I think that is what gives us a big advantage," Baron said.

Tesla certainly has its doubters, and the company has struggled with a number of challenges, including production issues that have slowed deliveries of the company's Model 3 sedan.

But Baron has confidence in Tesla's CEO Elon Musk, and believes competitors will have a tough time catching up to Tesla.

Paraphrasing Robert F. Kennedy, Baron said Musk "thinks about things that never were and asks why not?'"