Ron Baron Tesla Sees $2,500 Target, Holds Stakes
Ron Baron Tesla reaffirmed a lifetime hold and backed Musk's pay package, spotlighting governance and focusing investors on his $2,500 Tesla price target.
KEY TAKEAWAYS
- Baron reaffirmed he will not sell his personal Tesla or SpaceX holdings.
- He set a $2,500 Tesla price target and projected fivefold upside over a decade.
- Baron Capital said it will vote in favor of Musk's proposed CEO pay package.
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Ron Baron Tesla reaffirmed on Nov. 14, 2025, that he will not sell his personal holdings in Tesla (TSLA) or SpaceX and supports Elon Musk’s proposed CEO pay package, citing AI-driven product innovation as the basis for multi-year upside.
Baron's Long-Term Holdings and Growth Outlook
On CNBC, Ron Baron said he does not expect to sell his Tesla or SpaceX shares during his lifetime, describing the stance as a personal, long-term commitment. His portfolio is roughly 40% invested in Tesla, 25% in SpaceX, and includes a smaller stake in xAI, which has doubled from a $350 million investment to about $700 million. Baron compared Elon Musk to Leonardo da Vinci, calling him “an artist” and highlighting Musk’s visionary leadership as the foundation of his conviction.
Baron framed Tesla’s outlook as a decade-long opportunity driven by AI and product innovation rather than short-term metrics. He projects Tesla shares could increase fivefold over the next ten years and anticipates a potential tenfold return from SpaceX over a similar period. He pointed to Tesla’s Dojo supercomputer and Optimus humanoid robot, along with SpaceX’s use of AI in Starlink and autonomous spacecraft, as key growth drivers. Tesla reported $25.5 billion in automotive revenue in the third quarter of 2024, with AI software subscriptions contributing to recurring income. SpaceX’s Starlink served more than 3 million users globally as of September 2024. Baron acknowledged regulatory challenges for Starlink, including FCC approvals, but said ongoing compliance and scalable business models support his long-term thesis.
Proxy Vote and Upcoming Conference
Baron Capital said it will vote in favor of Elon Musk’s proposed CEO pay package, which aligns Musk’s incentives with shareholder interests and aims to retain him as CEO. The package is subject to shareholder approval at Tesla’s upcoming annual meeting. Baron’s public backing and large personal stakes come ahead of the 32nd annual Baron Investment Conference in New York City, where he is scheduled to interview Musk. The conference is expected to focus on both the strategic outlook and the proxy vote.
"I don’t expect to sell in my lifetime, Tesla or SpaceX, either one," Baron said.
