Billionaire Ron Baron Says Tesla & SpaceX Could Create the Next Wave of Millionaires—Key Insights Revealed

Veteran growth investor Ron Baron is back in the spotlight this week after a live appearance on CNBC’s “Squawk Box,” where the billionaire doubled down on his long-term bet that a SpaceX initial public offering could be “the defining wealth-creation event of the next decade.” During the segment, Baron said he expects the rocket company’s valuation to surpass $1 trillion within five years, citing accelerating Starlink cash flow and the promise of point-to-point space travel. The renewed media attention arrives at a pivotal moment for Baron Capital’s flagship Growth Fund, which is down about 9 percent year-to-date as rising rates punish high-duration assets. Despite the drawdown, Baron told viewers he has been adding to Tesla, SpaceX, and several AI-driven software names, arguing that “temporary volatility is the entry fee for extraordinary compounding.” In his first-quarter letter to shareholders, Baron framed the fast-emerging “space economy” as the internet’s next frontier, predicting that low-Earth-orbit data centers and solar-powered manufacturing will unlock multi-trillion-dollar industries over the next 20 years. The firm also revealed plans to launch a suite of actively managed ETFs aimed at younger investors who prefer brokerage apps over traditional mutual funds. Market watchers say a SpaceX listing could be the catalyst Baron needs. The Growth Fund owns roughly 1.8 million shares of the private company—an investment now valued at more than $1 billion, according to regulatory filings. If SpaceX debuts at even conservative valuations floated by underwriters, Baron Capital’s assets under management could surge, instantly reversing three consecutive quarters of net outflows. Beyond Elon Musk–related holdings, Baron highlighted lesser-known positions such as Databricks, Anthropic, and private biotech upstart Altos Labs, all of which he believes will benefit from the convergence of AI, genomics, and cloud computing. “We look for visionary founders who can scale ideas into hundred-baggers,” he reiterated, referencing lessons he shared at last year’s Morningstar Investment Conference. Analysts caution that Baron’s concentrated style magnifies both upside and downside. More than 40 percent of the Growth Fund is tied to Musk-led ventures, leaving performance vulnerable to regulatory shifts, launch setbacks, or changes in electric-vehicle demand. Yet history suggests betting against Baron can be costly: a $10,000 investment in his first public fund in 1987 is worth roughly $2.6 million today, even after the recent slide, according to Barron Capital data. Looking ahead, the 83-year-old investor said he expects the Federal Reserve to cut rates twice by year-end, creating a “goldilocks window” for high-growth equities. He also hinted that Baron Capital is exploring a strategic partnership with a Middle-East sovereign fund to accelerate its private-market deal flow—another sign that the veteran stock-picker is positioning for a post-IPO SpaceX era. For now, all eyes remain on SpaceX’s S-1 filing. If the rocket maker pulls the trigger before Starship’s next orbital test, Ron Baron could soon add another chapter to his already storied career—one powered not just by Tesla’s cars, but by humanity’s leap into orbit.