Billionaire money manager Ron Baron had a successful 2024, largely due to his investments in Tesla and SpaceX. His top fund, the Baron Partners Fund, is up 37% year to date, thanks to the surge in Tesla’s share price. His other mutual fund, the Baron Growth Fund, has lagged behind this year, as it does not have exposure to Tesla or SpaceX. However, it has historically delivered solid returns.
Baron first invested in Tesla between 2014 and 2016 at prices between $10 and $12 per share. He predicts that Elon Musk will be the first trillionaire and potentially even a multi-trillionaire. Baron believes that Tesla could reach a market capitalization of up to $5 trillion in the next ten years, especially if Musk is successful with new ventures like robots or autonomous driving.
Despite some outflows from his funds due to Tesla’s mediocre performance in recent years, Baron remains confident in the company’s future potential. He has no plans to further reduce his position in Tesla. Baron’s net worth has grown to $6.5 billion, up from $5.1 billion earlier this year, largely due to his successful bet on Tesla.
Baron is particularly enthusiastic about SpaceX, Musk’s privately-owned rocket company. He predicts that SpaceX could reach a valuation of $400 billion by 2027 and $600 billion by 2030. Baron sees SpaceX as building the “railroad to space” with its reusable rockets and is bullish on the company’s Starlink internet broadband service.
Furthermore, Baron believes that Musk’s new role in government, specifically in the Department of Government Efficiency, could bring positive changes. He argues that Musk’s efficiency in running SpaceX could translate into improving government operations. Baron has high hopes that Musk can help address regulatory burdens and contribute to reducing the U.S. deficit issue.
Looking ahead, Baron’s firm is considering active ETFs as a potential growth opportunity. His sons, Michael and David, are involved in the business and have been pushing for this expansion. Baron is inspired by Musk’s success and aims to grow his firm into a trillion-dollar entity. Despite his age, Baron has no plans to retire and is focused on expanding his firm’s assets under management.
