Hyperdrive
Tesla Bull Warns Ditching Cheaper Car Would Be ‘Thesis-Changing’
- ‘Model 2 is a crucial piece of our thesis,’ David Baron says
- Tesla is biggest drag on Baron’s Focused Growth Fund this year
A prominent Tesla Inc. investor on Wall Street warns his bullish case would be in jeopardy should Elon Musk abandon the long-held bid to bring a low-cost vehicle to the masses.
As the electric-vehicle maker’s outlook comes into question — pushing its market valuation below $500 billion this week, a level last seen more than a year ago — David Baron is dispirited by recent reports that Tesla could ditch its goal to bring an affordable car and shift resources to developing a robotaxi instead.