Part 7/11:
While Morgan Stanley’s Adam Jonas once favored Tesla but recently downgraded the stock due to its high valuation, Baron remains bullish. He critiques many financial analysts for their short-term focus—driven by the desire to generate brokerage commissions—rather than long-term value creation.
Baron dismisses the noise around Tesla’s valuation, asserting that the stock’s recent dip from $300 to $100 still reflects a business that has tripled in size. He notes that Tesla’s actual business growth far exceeds its current share price, making current levels attractive for long-term investors.