Billionaire investor Ron Baron thinks Tesla shares have a lot of room to run.

Speaking on CNBC's "Squawk Box" Tuesday morning, the founder of Baron Capital said, "I think it is going to be about $500 to $600 next year, and I think it is going to be $1,000 in 2020."

At that time, Baron said, he expects the company to have $70 billion in revenue and to be earning $10 billion in operating profits. By 2020, the company expects to be selling 1 million cars per year.

Baron is a major Tesla shareholder. He said he bought about 1.6 million shares about 3½ years ago, at an average share price around $208 to $210.

Baron said he does not think other car companies can catch up to Tesla's electric vehicle technology. But tech firms, some with deep pockets, are also moving in. Tech giant Apple confirmed it is working on autonomous driving on Tuesday, making it another of the several firms that have publicly discussed such plans.