Episode summary
Ron Baron on his Musk investments: Can make 'hundreds of billions of dollars' over the next 10 years
Summary
Ron Baron argued that his biggest investments in Tesla and SpaceX are still early in their run, and that the real upside comes from the companies’ long-term execution rather than any near-term merger structure. He said he would support Elon Musk “whichever” way Musk and the independent committees decide on a potential SpaceX-Tesla deal, adding that Baron is not trying to predict regulatory or governance outcomes.
Baron framed the investment case around infrastructure and energy: more power, more silicon production in the U.S., and eventually data centers in space. He said China is building power capacity far faster than the U.S., and argued that Musk is helping close that gap. In Baron’s view, space-based data centers could be significant by 2028, with a major ramp in the following year or two.
He also tied that optimism to Tesla’s robotaxi push and broader autonomy plans, saying the products are “going online rapidly right now.” Baron compared today’s opportunity to Tesla’s earlier years, when he held through volatility, and said investors who focus on quarterly timing can miss enormous long-term compounding. He said he thinks the firms he backs with Musk could generate “hundreds of billions of dollars” over the next 10 years.
Key takeaways
- Ron Baron said he would support Elon Musk’s decision on any SpaceX-Tesla transaction, and does not want to predict the committee process.
- Baron said his Tesla and SpaceX positions have already made roughly $30 billion and could make “hundreds of billions of dollars” more over 10 years.
- He argued that U.S. power buildout is lagging China, citing 550 gigs in the United States versus three times that amount in China.
- Baron said data centers in space could be significant in 2028, with a much bigger rollout in the year or two after that.
- He said Tesla’s robotaxi and autonomy rollout is happening “rapidly right now,” and that long-term investors should ignore short-term volatility.
Notable quotes
“GOOGLE HAS ALREADY LAUNCHED A SATELLITE TO SHOW THAT IT WORKS CURRENTLY”
“THE STOCK WENT UP 20 TIMES. AND THEN FOR CLIENTS, NOT FOR ME PERSONALLY, BUT FOR CLIENTS, WE SOLD A QUARTER OF OUR STOCK”
How the episode opens
Re-industrialization program going on that we make silicon in this country that we, you know. — You just blow bernie sanders off. — Who cares about him? He's almost dead.
Let me ask you a separate question, which is the last time we saw you, we asked you about the prospect of a merger between SpaceX and Tesla. Right. And at the time.
You sort of demurred because it hadn't been public yet that the company was thinking about this, or at least publicly declaring. So the company has now since said, elon said it, that there are independent committees now thinking about this. Right.
I don't know if you want to speak more openly about your feelings about that. And also, by the way, again, I know maybe politics is not supposed to come into this, but from a regulatory perspective or something else, whether this new dynamic changes the prospect of any kind of deal, I don't know.
Again, you're talking about things that you can't predict. — Yes.
You can't. Control and or control. And when this first came, you know, became public and people were talking about it.
I did speak to him. I wrote to him, I gave him my reasons why I thought it was positive or why I thought it was negative. And I said I wouldn't, you know, say publicly what my opinions were.
And but whatever he decided he would do, I'm not running a company. He is. And and I would support him whatever he wants.
He says he wants to do it. I mean, that was that is that piece of this is clear. That's what he would like to do. The question is whether the independent committees would like to do it, or at what price they'd like to do it.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- midterm election results
- elon's musk
- space-tesla merger
- data centers in space
- investment outlook over 10 years
Companies and tickers mentioned
- TSLA
- Baron Capital
- SpaceX
- Tesla
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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