Shares of Tesla, Inc. (TSLA, Financial), which designs, manufactures, and sells fully electric vehicles, solar products, and energy storage solutions, contributed to performance. Tesla’s stock has stabilized as investors gain conviction around Model 3 demand trends and the expanding Model 3 margins profile. Demand for Tesla’s Model S and Model X is increasing and construction of the company’s factory in China is ahead of schedule. We believe Tesla’s soon to be introduced Model Y crossover will positively impact the company’s gross margin. We continue to expect significant value creation for Tesla’s stakeholders.
From Ron Baron (Trades, Portfolio)'s Baron Focused Growth Fund third-quarter 2019 shareholder letter.
