Ron Baron Says Tesla (TSLA) Could Climb Within a Decade. Ark’s Model Leans on Robotaxis Maham Fatima Thu, November 12, 2026 at 6:32 AM EST 4 min read ^GSPC +1.31% TSLA -0.57% ^IXIC +1.60% Trade Tesla on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Tesla (NASDAQ:TSLA) ranks 8th on our newly published list of the 10 Best Growth Stocks to Buy for the Next Decade.
On November 5, the S&P 500 fell 4.36%, its worst day since the April 2025 tariff crash, with roughly $3 trillion in value wiped off S&P 500 companies. The Nasdaq Composite dropped 5.52% to slip into a correction, and chip stocks took the hardest hit, with the Philadelphia Semiconductor Index falling about 12%, its worst day since 2020. The slide followed a rough October, when the technology sector of the S&P 500 lost 6.8%, its biggest monthly drop since March 2025, while defensive groups such as consumer staples had a record month. Growth stocks tend to feel these swings first, because their prices rest on the promise of faster sales and earnings than the rest of the market.
The worry behind the selling is money. Investors are asking how companies will pay for their enormous artificial intelligence budgets and whether the returns will justify them. The midterm election results added a second concern, as investors began questioning whether the pace of data center construction could slow if new rules follow, which would weigh on AI spending. Our ranking of semiconductor stocks to hold for the next decade covers more of the group that took the sharpest hit.
A growth stock is a share in a company expected to grow its sales and earnings faster than the market average. These companies usually reinvest profits instead of paying dividends, so shareholders are rewarded through a rising share price, which is why the shares often carry high price-to-earnings ratios. A high multiple is not automatically expensive if the growth keeps coming, but it leaves little room for disappointment, and a stock priced for strong growth can fall sharply when the numbers fall short. Time helps in the other direction, because returns that stay invested earn returns of their own, a snowball effect that builds the longer the money is left alone.
The economy is adding another variable. October's jobs report showed payrolls up 165,000, far above the 65,000 economists expected, and traders now put the odds of a Federal Reserve rate hike in December above 75%. Edward Jones senior global strategist Angelo Kourkafas called it a "blowout jobs report." A strong economy is good for business, but higher interest rates make far-off earnings worth less today, which tends to weigh most on growth stocks. For readers hunting for bargains after the pullback, our list of undervalued growth stocks is a place to start. For long-term holders, the more useful question is not what the market does next month but which companies can keep compounding through several more months like this one.
Tesla qualified as a growth stock mentioned by at least three sources, with a market cap of $1.49 trillion and 116 hedge fund holders in Q2 2026.
Ron Baron, founder of Baron Capital, told CNBC that Tesla could reach $2,000 to $2,500 a share within ten years. Cathie Wood's Ark Invest has published a similar long-range view, a $2,600 target for 2029 that rests on robotaxis supplying nearly 90% of Tesla's enterprise value. Take the robotaxi out, and Ark's own model falls sharply.
The company began giving Robotaxi rides in Cybercabs in Austin late in the quarter, and cumulative unsupervised Robotaxi miles grew eightfold from the prior quarter, driven by sustained double-digit weekly growth. It ended the period with its largest backlog for passenger vehicles in four years and its highest-ever order rate and backlog in energy storage, a business Tesla says is critical to data center uptime.
Management said battery availability, not demand, was the limit on how many cars it could build, and that it made more progress in securing future supply. If that supply arrives, more of the backlog can turn into deliveries, which is the practical bridge between today's order book and the bigger robotaxi and energy plans long-term holders are waiting on.
Our latest analysis on Tesla (TSLA) is available here: Tesla (TSLA) Needs Stronger Earnings to Justify Its Autonomy Ambitions
While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: Nvidia Is Becoming More Than a Chipmaker. Can it Sustain Its Exceptional Margins? and Nvidia vs. Microsoft: Is NVDA's Explosive Growth Being Undervalued?
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