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.
- 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.
- He declined to disclose his private views on the potential transaction, but made clear that he would stand behind Musk’s decision.
- 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.
“I think we’re going to make five times again over the next ten years,” he added.
Space-Based Data Centers Could Be Musk’s Next Big Breakthrough, Says Baron
Beyond Tesla’s automotive and robotaxi ambitions, Baron sees Musk’s plans for energy infrastructure and space-based computing as potentially transformative.
He argued that the U.S. needs to dramatically expand its power generation capacity to compete with China, pointing to Musk’s efforts to harness solar energy and develop infrastructure beyond Earth.
Baron was particularly bullish on the prospect of putting data centers in space, suggesting the technology could arrive much sooner than skeptics expect.
“People are saying, well, it’s going to be ten years. It’s not going to be ten years,” he said.
Baron expects meaningful deployments as early as 2028, with the infrastructure potentially becoming much larger over the following one or two years.
“It will be huge in the year or two after that, but they will be significant in 2028,” he said.
Comparing Musk’s ambitions with Jeff Bezos’ longer timeline for space-based data centers, Baron acknowledged that every billionaire entrepreneur has an incentive to promote their own vision.
“This is the most remarkable investment I’ve made in my career. I’m 83. I’ve been doing this for 56 years. This is the most remarkable company I’ve ever seen in my life,” he added.
What Retail Investors Think Of TSLA Stock
Retail sentiment on Stocktwits around Tesla trended in the ‘extremely bearish’ territory at the time of writing.
TSLA stock is down 20% year-to-date, while SPCX stock is down 10%. The S&P 500 ETF (SPY) is up 10% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 7%.
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