Could SpaceX Buy Tesla? Ron Baron Says He Gave Elon Musk Reasons For And Against A Blockbuster Deal

• Baron Capital held about $25 billion in SpaceX and more than $5 billion in Tesla as of June.
• Musk recently declined to rule out a merger, pointing to growing collaboration across his companies.
• Tesla and SpaceX increasingly work together across AI, energy, computing, connectivity and manufacturing.

Billionaire investor Ron Baron said he personally gave Elon Musk arguments for and against merging his companies, SpaceX and Tesla, adding that he would support whatever the CEO ultimately decided.

SPCX stock jumped 5% on Wednesday, while TSLA stock ended 0.4% higher. 

Baron’s Massive Musk Exposure 

“I told him that I gave him reasons why I thought it was good and why I thought it wasn’t,” the Baron Capital founder and CEO said in a CNBC interview on Wednesday. “I said that I’m not someone who makes the decision. You’re the guy,” Baron recalled telling him. “Whatever you decide is better is what I’m going to support.”

Baron Capital held about $25 billion in SpaceX shares and more than $5 billion in Tesla as of the end of June. “That’s $3 billion more than Nvidia,” Baron said of his SpaceX stake. The firm’s next 13 major holdings, including Hyatt, MSCI, Spotify and Charles Schwab, were worth about $15.5 billion combined. 

Baron said his firm had generated $71 billion in profits for clients since its founding, with about $30 billion coming from investments in Musk’s companies. His personal holdings include $5 billion in SpaceX and $1.5 billion in Tesla, alongside about $1.8 billion invested in Baron mutual funds. 

The Baron First Principles ETF (RONB) has fallen about 6% in 2026, underperforming other Musk-focused investment vehicles. The ARK Innovation ETF (ARKK) is up 8%, while Destiny Tech100 (DXYZ) and the ERShares Private-Public Crossover ETF (XOVR) have gained about 0.4% and 3%, respectively. 

Despite calling Tesla a buy at current levels, Baron said that he does not need additional exposure. When asked whether he was buying more, he replied: “I have $30 billion invested… That’s enough.”

Musk Fuels Tesla-SpaceX Merger Speculation 

Baron’s disclosure follows comments from Musk that fueled speculation about merging the companies. When asked at the All-In Summit why Tesla and SpaceX remain separate despite their growing ties, Musk called it a “great question.”

“With all this collaboration, on so many levels, who can imagine what action one might take when there’s so much close collaboration in so many areas,” Musk said. He did not confirm a plan, but he also stopped short of rejecting the idea.

Tesla And SpaceX Build A Shared Ecosystem

Tesla and SpaceX remain legally separate, but their operations increasingly overlap. Tesla provides expertise in batteries, power systems, AI and mass manufacturing, while SpaceX brings launch capacity, Starlink connectivity, satellite infrastructure and experience running complex engineering programs at scale.

SpaceX President Gwynne Shotwell said at the All-In Summit that SpaceX personnel had moved into xAI to fill leadership and engineering gaps. The teams were integrating “faster than I thought,” she said, although the businesses were “not fully integrated yet.”

Shotwell also highlighted collaboration in AI, computing and solar-panel production. SpaceX plans to deploy AI-computing satellites, while Tesla’s autonomous vehicles and Optimus robots require computing power, energy storage and connectivity. SpaceX, in turn, needs batteries, solar power, chips and large-scale manufacturing for Starlink, Starship and its planned orbital-computing network.

Tesla recently added to the speculation by scheduling an Oct.1 unveiling for its long-delayed next-gen Roadster with the phrase “Go for launch,” marking a clear SpaceX reference. Musk has previously teased possible rocket-assisted features for the vehicle.

How Do Retail Traders Feel About TSLA And SPCX?

On Stocktwits, retail sentiment was ‘extremely bearish’ for TSLA amid ‘low’ message volume, while sentiment around SpaceX was ‘neutral’ amid ‘normal’ chatter.

While TSLA stock has declined 15% over the past year, SPCX has fallen 6%. 

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