Tesla is currently experiencing its longest streak of weekly losses since its debut on the Nasdaq in 2010. The electric vehicle giant has suffered a seventh consecutive week of declines, marking a challenging period for investors and stakeholders. Despite this downturn, billionaire investor Ron Baron remains steadfast in his support of Tesla and its CEO, Elon Musk.
Baron, who initially invested $400 million in Tesla between 2014 and 2016, has seen his early bet on the company yield substantial returns. At the end of 2024, Tesla represented 12% of Baron's entire portfolio across different funds. Yet, even as the stock plunged 15% on Monday, marking its biggest one-day loss since September 2020, Baron is unwavering in his commitment.
"I'm the last in, I'll be the last out. So I won't sell a single share personally until I sell all the shares for clients, and that's what I've done," said Baron.
Tesla shares have been on a volatile journey ever since Elon Musk assumed a significant role in the second Trump White House. Musk now leads the advisory Department of Government Efficiency, which is involved in a controversial initiative to cut federal government spending and reduce employee numbers across numerous agencies. This high-profile position has contributed to Tesla's fluctuating stock performance and market perception.
In response to the growing size of its Tesla position, Baron Capital trimmed its holdings in the second quarter of the previous year. Nevertheless, Baron has vowed that his personal Tesla shares would be the last he would touch when it comes to portfolio management. He remains optimistic about Tesla's future prospects and Musk's leadership despite recent challenges.
"I would hope that he would be a little less visible, but he feels that this is the way he's going to get things done," remarked Baron about Musk's approach.
Tesla's mainstream acceptance has been undeniable, yet it currently faces a turbulent market environment exacerbated by Musk's admission on Monday that he is managing his businesses "with great difficulty." The investor community remains divided on Musk's dual roles as CEO of Tesla and head of the Department of Government Efficiency.
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