Legendary investor Ron Baron recently reiterated his unwavering support for both Tesla and SpaceX, expressing his continued confidence in CEO Elon Musk. Baron, the founder, CEO, and portfolio manager of Baron Capital, praised Musk as a “special person” and “brilliant” during an appearance on CNBC’s Squawk Box.
Baron discussed the impressive growth of his firm’s holdings in both Tesla and SpaceX, highlighting the significant increase in their value over the years. SpaceX, in particular, has seen a remarkable surge in value, with Baron Capital’s investment growing from $1.7 billion to over $15 billion, making it the firm’s largest holding. Tesla also holds a substantial position in the portfolio, valued at around $5 billion.
The focus of the conversation was on SpaceX’s anticipated IPO, scheduled for mid-2026 following a confidential S-1 filing. Baron revealed his plans to purchase an additional $1 billion in shares at the IPO, emphasizing his belief in the company’s potential to become the largest on the planet.
Baron painted a bright future for SpaceX, citing Starlink’s global internet expansion, the economic advantages of reusable rockets, and the potential of Starship for space-based infrastructure. He envisioned significant post-IPO appreciation for SpaceX, potentially reaching 10 to 30 times current levels over the next decade.
Turning to Tesla, Baron expressed equal enthusiasm, declaring that now is the company’s moment to shine. He projected a stock price of $2,000 to $2,500 per share within a decade, implying substantial upside potential from its current levels. Baron highlighted Tesla’s evolution beyond electric vehicles into AI, robotics, autonomous driving, and energy platforms.
Throughout the interview, Baron’s admiration for Musk was evident, likening him to a modern Leonardo da Vinci for his innovative approach to solving global challenges. Baron’s personal commitment to holding onto his Tesla and SpaceX shares for a lifetime reflects his long-term investment philosophy.
Baron’s comments come at a time of heightened anticipation for SpaceX’s IPO, which could be one of the largest in history. He emphasized the compelling growth story of the Musk ecosystem, encompassing various industries like electric vehicles, autonomy, robotics, and space exploration.
In conclusion, Baron reiterated his belief in the transformative potential of Tesla and SpaceX, urging investors to remain patient through market fluctuations. He sees the best days for both companies and the returns they can offer still ahead.