A Tesla Motors Inc (NASDAQ:TSLA) vehicle will be in every home in 25 years, according to mutual fund manager Ron Baron of Baron Capital, who is famous for his long-term strategies, says a report from CNBC. Baron is often compared to Warren Buffet for his habit of a writing letters to shareholders on why he invests in certain stocks and how they are in line with his overall investment philosophy.

Tesla Motors Inc Cars Will Be In Every Garage In 25 Years: Ron Baron

Tesla is a ‘Built to Last’ stock

Tesla is one such stock on which Baron is very confident, and in his most recent letter to the shareholders he discusses why he is betting big on Tesla Motors. Baron said, “We are a fan of Tesla’s business and of Elon Musk.” The shares of the Elon Musk led company fits Baron’s strategy of “built to last,” a strategy also followed by Warren Buffet.

Baron noted that it’s possible that almosr everyone could be a Tesla owner in 25 years because its competitors are already entering into this area. He said that other car makers are developing electric expertise to contain the dominance that Tesla has achieved.

Difference of culture

Baron highlights the problems faced by car companies today such as plant retrofits for engine parts, hurdles created by unions and dealer resistance, saying they are their own worst enemies, which will drive Tesla ahead.

Baron says that the culture at Tesla Motors Inc (NASDAQ:TSLA) is in contrast to that of other car companies, except for BMW. According to Baron, two of his analysts recently visited BMW in Germany, and the financial team at the company believes that “revolution in the drive train is underway,” which makes them to think that BMW will dump internal combustion engines over the next 10 years.

The Palo Alto-based company’s shares soared from $28 in 2012 to as high as $291 earlier this year and further surged on Thursday after earnings. For the quarter, Tesla posted earnings of 2 cents per share compared to the consensus estimate of 1 cent per share. For 2014, the automaker expects to sell 33,000 units, which is lower than the earlier projection of 35,000 vehicles.

On Thursday, Tesla shares were up 4.4% to $241.42 and in after-hours trading shares were up 0.16% at $241.60.