Renowned investor Ron Baron, founder of Baron Capital, has made a significant investment in Elon Musk’s ventures, primarily in Tesla. Over the past decade, Tesla’s share in Baron Capital’s assets has grown from 2% to approximately 10.9%, making Baron’s primary mutual fund the sole fund to outperform the Nasdaq over the last 5, 10, and 15 years. Baron, known for his long-term, focused investment approach, maintains a bullish outlook on Tesla, predicting its market cap to potentially soar from $630 billion to $4 trillion in the next decade.
Baron’s optimism extends beyond Tesla to SpaceX, where he invested around $700 million a few years ago. Anticipating SpaceX’s public listing within the next three years, Baron envisions its value reaching $500 to $600 billion by 2030, possibly surpassing Tesla’s prominence by the 2030s. He highlights SpaceX’s satellite-Internet business as a transformative element, foreseeing it as the “Internet for the planet” and offering cost-effective services compared to competitors.
While acknowledging the risks associated with substantial investments tied to one individual, Baron notes the growth and diversification of talent within Tesla and SpaceX. Despite Elon Musk’s unique and irreplaceable role, Baron believes in Musk’s continued impact for at least the next 5 to 10 years, underlining the resilience and brilliance of the workforce within these companies.