Part 6/11:
Baron highlights the massive opportunity in the underpenetrated electric vehicle market. Currently, only about 6% of cars are electric, representing a small fraction of the total fleet. He emphasizes the potential for exponential growth, driven by decreasing battery costs and evolving consumer preferences.
Tesla’s agility in factory construction—reaping rapid investment returns—and its innovation in scaling production set it apart from legacy automakers, who face significant delays and inefficiencies. Baron projects Tesla will continue to outpace competitors in capital efficiency and market expansion.