The $8B Tesla Bet: Why This Legendary Investor Still Isn't Selling

Ron Baron, who’s turned Baron Capital into a $45B empire, just dropped some spicy takes on Tesla—and they’re worth paying attention to.

Here’s the wild part: Baron turned a small bet into $8 billion in personal gains from Tesla shares. But instead of cashing out, he’s doubling down. He recently told CNBC he hasn’t sold a single share and doesn’t plan to in his lifetime. About 40% of his net worth is still locked in TSLA.

The kicker? He’s eyeing $2,500 per share in 10 years. Current price? Around $250-270. That’s roughly 10x upside.

What’s his play? Baron sees three things:

1. Elon is irreplaceable - He calls it “key-man risk,” meaning without Musk’s obsession, Tesla wouldn’t exist. Elon’s not chasing beach houses; he’s chasing legacy.

2. Tesla’s sacrificing profits for growth - The company’s reinvesting aggressively instead of maximizing current earnings. Classic growth move.

3. Optimus is the real prize - Tesla’s humanoid robot could unlock “sustainable abundance” and transform labor economics entirely.

Funny enough, Baron’s track record speaks louder than most: his flagship fund returned ~15% annually vs. S&P 500’s ~10% over decades. He bought Tesla in the 2014-2016 dip when people thought it would die. He held through every drawdown.

So what’s the takeaway? A guy who’s proven he can time mega-trends still sees Tesla as a 10-year play. Whether you agree or not, that conviction is worth a second look.