Our second largest position is electric vehicle company Tesla Motors,Inc. (NASDAQ:TSLA). The company is run by someone we believe to be a true visionary, Elon Musk. We think Tesla has first mover advantage, the best talent pool in the industry, scale, and brand.
While paving the way for transformation of the automotive industry in areas like electrification, safety, self-driving, connectivity, and more, Tesla has built an impressive brand awareness that will serve it for years to come, in our view. Tesla has invested in highly automated manufacturing facilities for its cars and batteries, innovations such as automated driving technology and a networked fleet, and other key initiatives aimed at building the world’s leading electric vehicle company. We believe that over the next decade, electric vehicles will be cheaper, better, and safer. Tesla is enabling the ride to this future; and with its first mover advantage, human capital, and a visionary leader, we believe it will take a significant share of the secular shift from gas-powered to electric vehicles.
From Baron Funds' fall 2016 newsletter. Continue Reading »