Ron Baron Optimistic About Elon Musk Achieving Goals Set In New Pay Package, Compares Him To Da Vinci: ‘He Remembers Everything…’

• Baron’s asset management firm is invested in Tesla and SpaceX, and his personal net worth is also largely tied to the two companies. 
• The billionaire investor committed to not selling his personal Tesla holdings until all his clients have done the same. 
• Baron Capital expects returns from Tesla and SpaceX investments to increase five times in the next 10 years.
   

Baron Capital’s Ron Baron on Friday likened Elon Musk to Da Vinci after backing the CEO’s whopping $1 trillion package at the EV maker earlier this month.

“This guy (Musk) is like Da Vinci, an artist. He remembers everything...the way I think about it is he wants to think about how people will remember him someday, what he's created and helped humanity survive,” Baron told CNBC.

Baron’s Commitment

Ron Baron’s asset management firm is a Tesla investor, and he is also personally invested in Musk’s many companies. Baron stated that he doesn’t expect to sell his personal Tesla or SpaceX shares in his lifetime. Roughly 40% of Baron’s personal net worth is invested in Tesla, alongside 25% in SpaceX and about 35% in Baron mutual funds.

He noted that while Baron Funds sold a third of its Tesla holdings a few years ago due to client concerns around concentration, he did not sell his personal holdings.

“We sold 30% for clients. I did not sell personally a single share,” he said.

The investor also added that he will not sell a single share of his personal holdings in Tesla and SpaceX until his clients have sold all of theirs. “And I don’t expect to sell in my lifetime Tesla or SpaceX,” he said.

Baron Capital’s Investment Returns From Tesla, SpaceX

Baron noted that his asset management firm has made about $8 billion from investing in Tesla and about $4 billion from its investments in Musk’s rocket manufacturing company, SpaceX. “So about $12 billion or $13 billion we made so far. I think we're going to make five times that next 10 years,” Baron said.

Baron pledged support for Elon Musk’s new pay package at Tesla worth about $1 trillion earlier this month, saying that Tesla’s success and its future are inseparable from its CEO. On Friday, he also reiterated hopes for Musk achieving the goals outlined in his performance-based pay package over the years, including an increase in valuation.

How Did Stocktwits Users React?

Shares of Tesla traded marginally in the green on Friday morning, at the time of writing. On Stocktwits, retail sentiment around TSLA stock fell from ‘bullish’ to ‘bearish’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.

TSLA stock is up by 30% over the past 12 months. 

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