CNBC

Ron Baron, a billionaire investor and Tesla bull, told CNBC Tuesday that he thinks the company could reach $1 trillion in revenue in 10 years.

Shares of Tesla surged as much as 16% in early trading Tuesday.

Even after Tesla's recent run pushed Baron Capital's Tesla stake to $1.3 billion as of Monday's close, Baron has said that he will not sell.

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Ron Baron, the billionaire investor and long-time Tesla bull, said in an interview with CNBC on Tuesday that he thinks the automaker could reach $1 trillion revenue in 10 years and keep growing.

"You're looking at the very start of what's going to happen with Tesla," he said, adding that his estimate assumes that Tesla produces 10 million cars, and it does not include the battery business.

Baron has been a Tesla bull since 2014, and his firm, Baron Capital, holds more than 1.6 million shares of the automaker. He's long forecasted that Tesla can hit a $1 trillion revenue target in the future, and has said that if it were only up to him, the firm would own more Tesla shares.

Even after Tesla's recent run pushed Baron Capital's Tesla stake to $1.3 billion as of Monday's close, Baron said that he will not sell and that he would not split the stock, even at $900. He sees no downside in investing in Tesla for two reasons, he told CNBC — the company is good for the planet, and it could always be bought.

"This could be one of the largest companies in the whole world," he said.

Tesla shares are up as much as 16% in early trading Tuesday, continuing a rally from the company's positive fourth-quarter earnings results on Wednesday. Shares of the Elon Musk-led automaker have been on a tear since October, when a surprise return to profitability sent the stock surging higher. It's up more than 155% since.

Tesla has gained roughly 87% year-to-date through Monday's close.

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