Tesla investor who made billions on stock says SpaceX will be bigger

Key Points

• 🚀 Ron Baron, a Tesla investor, predicts that SpaceX will experience significant growth and could become even more valuable than Tesla.
• 💰 Baron made between $5 billion and $5.5 billion from his investment in Tesla, which began in 2014 with an initial investment of $400 million.
• 💡 He expects to make five times his money within the next 7-8 years.
• 🌌 Baron’s second-largest holding is SpaceX, in which he has invested roughly $700 million, resulting in approximately $1 billion in gains.
• 📈 He believes SpaceX will go public with Starlink in the next three years and estimates its value to increase from $150 billion to $250-300 billion by 2030 and possibly $500-600 billion by the 2030s.
• 🚗 Baron sees parallels between Tesla and SpaceX, particularly in their innovative approaches, such as reusable rockets and Starlink’s high-speed internet access.
• 🛰 Starlink’s technology offers a more cost-effective solution for internet access in remote areas.
• 📺 You can find Baron’s full interview with MarketWatch for more details.

A Tesla investor whose firm has made billions on the automaker’s stock says SpaceX, Elon Musk’s space exploration company, is the next stock to grow thousands of percent and could quite possibly be even bigger than the EV company in terms of valuation.

Ron Baron has made, at the peak of Tesla’s surge on Wall Street, between $5 billion and $5.5 billion on his investment in Tesla, which first started in 2014 and resulted in $400 million in initial investments. Baron expects to make five times his money within the next 7-8 years, he said in an exclusive interview with MarketWatch.

A fan of Musk and his “mission-driven” personality, which resulted in a massive switch in the world’s opinions on electric cars, Baron knew there was a “big upside” because of the Tesla CEO’s brilliance. His sentiment goes further than just Tesla, as Baron’s second-largest holding is SpaceX, a company that is still privately listed to the most exclusive of investors.

SpaceX received an investment from Baron in 2017, and since then, his firm has put in roughly $700 million in funds. That has resulted in roughly $1 billion in gains, Baron said.

“In the case of SpaceX, we think that over the next three years, it’s likely they will go public with Starlink…and we think that we’re going to make double in the company by then,” Baron said. “We think that the business, which is now valued at $150 billion, we think at that time will be worth $250 to $300 billion…by 2030, it is likely they will be worth somewhere around $500 billion or $600 billion. In the 2030s, that when I expect we’ll make another ten times our money.”

Baron believes that the advantages of Tesla, which include the eventual completion of the Full Self-Driving suite and Robotaxi fleet, is also evident in SpaceX. In his interview, Ron Baron stated that SpaceX’s revolutionary business includes reusable rockets, something nobody else is doing. There are parallels in what Tesla is doing with its planned Robotaxi program, which will allow owners to make money off their cars using an initial investment in FSD.

There are other companies that operate autonomous driving fleets, and Cruise, after shutting down operations temporarily last week, was likely the most notable.

Additionally, the strength of Starlink is something that is very appealing to an investor. Baron noted the outrageous expense of getting internet to houses in the mountains of Nevada, which costs a whopping $53,000 per residence. Instead, people can use a Starlink terminal to access the satellites that have already been launched to gain access to high-speed internet.

Baron’s full interview with MarketWatch is available here.