Ron Baron says he will never sell SpaceX in his lifetime

Billionaire investor Ron Baron affirmed his lifelong commitment to Elon Musk's privately-held SpaceX, projecting a 10x return within a decade on his $1 billion investment, which has already surged to $4.5 billion since 2017. SpaceX constitutes 18% of the Baron Partners Fund, complementing his 30% holding in Tesla. Baron's unwavering conviction underscores his strategy of identifying and holding significant, long-term positions in high-growth companies led by 'exceptional executives,' highlighting potential alpha in unconventional, early-stage investments.

Analysis

Billionaire investor Ron Baron has publicly reaffirmed his profound, long-term conviction in SpaceX, stating he will likely never sell his shares and anticipates holding the position for at least another decade. Since his initial investment in 2017, Baron's stake has appreciated from approximately $1 billion to $4.5 billion, and he projects a further 10x return over the next ten years. This position is highly material, constituting 18% of the Baron Partners Fund. Combined with his 30% holding in Tesla (TSLA), this demonstrates a significant, concentrated bet on ventures led by Elon Musk, which aligns with Baron's stated strategy of investing in 'exceptional executives.' His commitment to Tesla remains firm despite the stock's recent decline of over 19% in 2025, which followed substantial gains in 2023 and 2024. This underscores a core investment thesis focused on long-term growth potential and visionary leadership, rather than short-term market fluctuations, a strategy Baron has cultivated since first observing Musk in 2010.

Key Decisions for Investors

• Investors should note the high concentration risk within the Baron Partners Fund, with nearly 50% of assets allocated to two Musk-led companies, a strategy that requires a strong alignment with Baron's long-term, high-conviction thesis.
• Baron's commentary suggests that positions in high-growth technology firms like Tesla should be viewed with a multi-year horizon, requiring tolerance for significant volatility, as evidenced by his unwavering stance despite the stock's 19% YTD decline.
• The 4.5x return on the private SpaceX investment highlights the potential for alpha in venture markets, suggesting that institutional investors might consider evaluating late-stage private technology companies for outsized growth, contingent on access and due diligence.
• Baron’s narrative reinforces the importance of qualitative factors, such as the perceived quality of executive leadership, as a critical component of a long-term investment thesis, rather than relying solely on current financial performance.