Ron Baron, founder of Baron Capital, is a Tesla shareholder and a big believer in Elon Musk’s vision of the future. Baron believes Tesla can grow sales to $1 trillion in 12 years. Anjali Sundaram | CNBCBillionaire investor Ron Baron believes Tesla will be a $2 trillion company following shares of the Silicon Valley automaker surging more than 400% this year.Baron, a longstanding Tesla supporter and shareholder, said Wednesday morning on “Squawk Box” that he believes Tesla’s vehicle sales will grow 50% annually in the coming years. Tesla’s current market cap is $416.2 million.”We’re very excited about that,” he said.Baron’s eponymous investment firm, with $39.9 billion in assets under management, holds more than 7.3 million Tesla shares as of Sept. 30. They were purchased at an average cost per share of $43.07, according to the firm. It has made about 10 times its money in investing in Tesla.”I’ve said for a long time, I thought it was going to be $1 [trillion] to $2 trillion. With what developments have taken place recently, I think $2 trillion is the right number. So I think it’s five times from here,” Baron said. Shares of Tesla are up more than 400% this year through Tuesday’s close. The stock begin trading on a split-adjusted basis on Aug. 31 following a five-for-one stock split.Tesla shares have been volatile since Baron invested in the Silicon Valley automaker. He described it as going “up and down like a yo-yo.”At Tesla’s 2020 shareholder’s meeting last month, Tesla CEO Elon Musk said the company’s vehicle deliveries in 2020 would be up 30% to 40% from last year, a range consistent with its previous prediction of 500,000 cars delivered this year.Musk also predicted the company will be able to make a $25,000 full self-driving car within three years.The annual meeting occurred with Tesla’s highly anticipated “Battery Day” on Sept. 22. Many on the Street were left disappointed by the multi-year timeline for the improvements to be realized in the company’s batteries, as well as the lack of concrete goals.The firm also owns about 1.3 million shares of Musk’s SpaceX, which it first purchased in September 2017. The firm most recently increased that stake in August. Other holdings include Hyatt Hotels, Amazon and Charles Schwab.”This is probably the best year we’ve ever had,” he said.— CNBC’s Lora Kolodny and Pippa Stevens contributed to this report.