Ron Baron Predicts Tesla’s Valuation to Grow Four- to Fivefold by 2030, Holds Over $1 Billion Stake in SpaceX

Billionaire investor Ron Baron predicts Tesla’s valuation could skyrocket between four- and fivefold by 2030, according to a recent report by the Associated Press via Business Wire. Baron, a staunch supporter of Tesla, also revealed that he holds a stake in Elon Musk’s SpaceX worth over $1 billion.

Baron, the founder of Baron Capital, shared his optimistic outlook on Tesla’s future growth in an interview with CNBC. He believes that the electric vehicle maker’s market value will significantly increase over the next seven years, citing factors such as the rise of AI as an investment theme and Musk’s renewed focus on the company.

Tesla’s stock has already surged 120% this year, driven by various factors including the Federal Reserve’s actions on inflation and Musk’s increased involvement in the company. If Tesla’s stock price were to increase fivefold from its current level, the company’s total market capitalization could exceed $4 trillion.

Baron disclosed that he owns 17.5 million Tesla shares, valued at $4.8 billion, and has also built a stake of over $1 billion in SpaceX since first investing in the company in 2017. He praised SpaceX’s innovative technology, stating that no other company can compete with its ability to launch and land rockets.

Despite some past controversies involving Musk, including a public feud with a British cave diver, Baron remains a close ally and admirer of the entrepreneur. He described Musk as a “very funny, engaging, smart, incredibly hardworking person” who has revolutionized the electric car industry and space exploration.

Overall, Baron’s bullish predictions for Tesla and SpaceX reflect his confidence in the companies’ potential for future growth and success. Investors and industry observers will be closely watching to see if Baron’s projections come to fruition in the coming years.