Baron Capital's Decade-Long Bet on Tesla and SpaceX Pays Off, Sees Trillion Dollar Potential

Baron invested $570 million in Tesla between 2014-2016, making it 2% of his assets under management at the time.

Tesla now represents about 10.9% of Baron's $41 billion under management. Baron's main mutual fund is the only one to beat the Nasdaq over the last 5, 10 and 15 years.

Baron believes Tesla's market cap can grow from $630 billion now to $4 trillion in 10 years as it expands beyond just cars and batteries.

Baron invested $700 million in SpaceX several years ago. He expects it to IPO in the next 3 years at a $150 billion valuation, growing to $500-$600 billion by 2030.

Baron says 3.5 million people applied for jobs at Tesla and SpaceX last year, making them more resilient companies even if Musk were to leave.