Ron Baron Has Made $30B Betting On Elon Musk — Now He Sees ‘Hundreds Of Billions’ More Coming From His TSLA, SPCX Investments
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Baron said he trusted Elon Musk to make the right decision for both businesses when asked whether a potential Tesla-SpaceX merger would influence the returns on his investments.
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He declined to disclose his private views on the potential transaction, but made clear that he would stand behind Musk’s decision.
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Baron also pointed to Tesla’s historical performance as a reason to stay invested rather than attempt to time market fluctuations.
Ron Baron has long been betting on Elon Musk, with investments spanning Tesla Inc. (TSLA) and Space Exploration Technologies Corp. (SPCX) delivering enormous returns for the billionaire investor. But the Baron Capital founder believes the biggest payday from his Musk bets could still be ahead.
During an interview with CNBC, Baron said he expects to make hundreds of billions of dollars over the next decade, regardless of whether Tesla and SpaceX eventually merge.
Tesla shares gained more than 4% in Friday’s regular trading, while SpaceX shares surged nearly 9%.
Baron Says Musk Bets Could Deliver Hundreds Of Billions More
Baron said his investments in Musk’s companies have already generated roughly $30 billion, and he expects substantially bigger returns over the next decade.
“I think that over the next ten years, I think we’re going to make hundreds of billions of dollars, hundreds,” Baron said.
Asked whether a potential Tesla-SpaceX merger would influence those returns, Baron was indifferent, saying he trusted Musk to make the right decision for both businesses.
“Doesn’t matter to me. He’s going to do what’s best for the companies and for operating most efficiently,” he said.
Tesla and SpaceX have been exploring the possibility of a combination, with independent committees reportedly evaluating the proposal. Baron declined to disclose his private views on the potential transaction, but made clear that he would stand behind Musk’s decision.
“Whatever he decided he would do, I’m not running a company. He is. And I would support him in whatever way he wants,” Baron said.
The investor also pointed to Tesla’s historical performance as a reason to stay invested rather than attempt to time market fluctuations.
Recalling how Tesla shares once traded between $200 and $300 before eventually surging, Baron said he resisted selling because he feared missing the next leg higher. The stock ultimately climbed around 20 times, and later reached gains of approximately 40 times from his original investment.
