Billionaire Investor Ron Baron Says, “The Time To Buy Tesla Stock Is Now,” On Predicted Rapid FSD Growth
Ron Baron holds billions in Elon Musk bets and just told CNBC viewers exactly why Tesla shares deserve their money right now, while staying conspicuously silent about one merger question that could change everything.
Asked on CNBC’s Squawk Box how he felt about a potential SpaceX bid for Tesla, billionaire investor Ron Baron revealed he had already walked Elon Musk through the arguments for and against folding the two companies together. Then he refused to share them. “I don’t want to say,” Baron told the anchor when pressed, before pivoting to a full-throated pitch for Tesla (NASDAQ:TSLA | TSLA Price Prediction) shares.
The silence matters because of the size of the position behind it. Baron Capital holds $25 billion of SpaceX and roughly $5 billion of Tesla, and Baron said $30 billion of the $71 billion in profits his firm has generated for clients came from Elon Musk investments. No public investor is more exposed to what Musk decides next.
Why Baron Says Buy Tesla Now
Baron’s bull case rests on Full Self-Driving. He told viewers 11 million people now use FSD, with 55% year-over-year growth in new adoption, and argued Tesla’s market share is expanding as legacy automakers pull back on EVs. He offered a personal demo as color: his Model S drove itself around his East Hampton property, opening the garage and gate, making turns, and stopping for ducks crossing the road.
Tesla’s own numbers support the trajectory. In Q2 2026, active FSD subscriptions reached 1.48 million, up 56% year-over-year, and the FSD attach rate exceeded 55% of new North American deliveries. On the July 22 call, Musk described FSD as “a significant demand driver” and added:
“I think for a lot of people, they’re actually buying Tesla full self-driving with a car attached as opposed to a car with FSD.”
Robotaxi is the second leg. Tesla has logged more than 380,000 miles of unsupervised Robotaxi service across six cities with zero notable incidents, and Musk said the miles are growing at more than 10% a week. Autonomy chief Ashok called it “literally exponential.”
Merger Odds the Market Is Already Pricing
While Baron stayed quiet, Polymarket is loud. Bettors put a Tesla-SpaceX merger announcement at 66% by December 31, 2027 and 57.5% by June 30, 2027, on more than $600,000 of volume. Two days before Baron’s appearance, Jim Cramer said on Mad Money that his only solution for Tesla is that SpaceX buy it.
The pressure is visible in the stock. Tesla trades at $357.83 and is down 20.43% year to date, even as Q2 revenue rose 25.52% year-over-year to $28.24 billion. Operating margin compressed to 1.4% and free cash flow swung to negative $1.09 billion as capex more than doubled.
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AJ spent 10 years writing about financial markets at The Motley Fool. His coverage centers on technology stocks and the broader macroeconomic trends, from interest rates to geopolitics, that shape where markets are headed next. AJ is drawn to the stories where big-picture economics and individual companies collide.
