One of the most open Tesla Inc TSLA Bulls and investors set a price target for shares of the electric vehicle leader in early November.

Here’s what went into the price target and how much the stock could be worth eight years from now if it hits its target.

What happened: An investor in Tesla since 2014, ron baron is one of the most outspoken Tesla bulls and believes the stock will continue to rise for years to come. Baron issued a price target that may bear similarities to a famous bull case from the CEO of Ark Invest Cathie Wood.

Baron said he believes Tesla could reach $500 to $600 per share by 2025 and the company could be worth $4.5 trillion in the next eight to 10 years.

“But that doesn’t include robots, that doesn’t include autonomous vehicles, that doesn’t include batteries,” Baron said in November 2022.

Baron’s stake in Tesla is worth around $4 billion across multiple Baron Capital funds. Baron’s cost basis is just $13 across multiple funds.

“I think in 2025 it will be (Tesla) $500 to $600 (per share). And in eight to ten years, we should be around $4.5 trillion.”

A market cap of $4.5 trillion would make Tesla more valuable than Apple and Saudi Arabia combined, a Claim Musk made in 2022.

Baron estimates Tesla will sell around 20 million cars a year going forward, compared to the roughly 1 million the EV maker is expected to sell in 2022.

“In 2030, if he’s making 20 million cars a year and they’re $50,000 a car, that’s $1 trillion in revenue and he’s making about a 30% operating profit.”

A multiple of 15 times operating earnings of $300 billion brings Baron to a target price of a $4.5 trillion market cap.

Related link: Tesla Q4 Earnings Highlights: Sales & EPS Beat, Cybertruck & Crypto Inventory Updates & More

Invest $1,000 in Tesla stock: Investors could benefit along the way if Baron’s price predictions are right.

$1,000…