Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Baron Capital founder and CEO Ron Baron is a long-time investor in both Tesla Inc and SpaceX. When it comes to a potential merger of the two companies, Baron says CEO Elon Musk knows best.
Baron began investing in Tesla in 2014 and in SpaceX in 2017. Today, Baron Capital has around $25 billion in SpaceX stock and $5 billion in Tesla stock. A single bad hire can set a startup back years.
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Baron would not elaborate on those reasons during the interview. In the end, whatever decision Musk makes, Baron said he will publicly support. "Whatever you decide is better is what I'm going to support," Baron recalled telling Musk.
Talk of a potential merger is heating up once again, thanks to comments made by Musk during the All-In Podcast live summit. Musk was interviewed virtually, while SpaceX President Gwynne Shotwell was live at the event. Trending: Avoid the #1 Investing Mistake: How Your 'Safe' Holdings Could Be Costing You Big Time Aside from a potential merger, Baron sees SpaceX stock soaring in value in the future.
During the interview, Baron highlighted the company's Starlink unit as being one of the most undervalued assets. "I think Starlink alone could be a trillion dollars in revenue in 10 years," Baron told CNBC, as reported by Stocktwits. Baron sees that $1 trillion turning into EBITDA of $700 billion to $800 billion for Starlink.
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