Ron Baron, founder of Baron Capital.
Anjali Sundaram | CNBC
Billionaire investor Ron Baron stands by Elon Musk’s Tesla in the face of a dramatic sale. The shares plummeted 15% on Monday, the biggest loss in the day since September 2020.
“It’s hard to believe we’re seeing how cheap they are,” Baron said Tuesday on CNBC’s “Scokebox.” “We thought we would make four times over the next 10 years. I think we’ll make more than that from these prices.”
Baron Capital Chair and CEO invested $400 million in Tesla between 2014 and 2016. That early bet went down to billions of dollars as EV companies gained mainstream acceptance. Tesla accounted for 12% of Baron’s total portfolio across various funds at the end of 2024.
Tesla shares have been on the Roiler Coaster since Musk went to Washington, D.C. to take a major role in the second Trump White House. Tesla has lost seven times in a row since making his debut with the Nasdaq in 2010.
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Tesla will share it in 2025.
Baron Capital trimmed Tesla’s position in the second quarter of last year. This is because the holdings have grown too big in the portfolio. Baron vowed that his personal Tesla stock would be the last he would touch on regarding portfolio management.
“I’m the last, I’ll be the last. So I’ll not personally sell a single share until I sell all the shares for my clients. That’s what I did,” he said.
Musk confirmed Monday that he runs his business “very difficult.” He took on the role of leading Trump’s Government Efficiency Advisory Bureau.
“I hope he’s a little less noticeable, but he feels this is how he gets things done,” Baron said of Musk, 53. “He’s got more charges about his business than ever before.”
