Tesla-SpaceX Merger Speculation: Ron Baron Throws Support Behind Elon Musk’s Potential Move

• Regarding SpaceX’s anticipated public debut, Baron said he plans to buy more shares at the IPO.
• Baron Capital currently manages roughly $56 billion, with approximately $15 billion in SpaceX and nearly $5 billion in Tesla.  
• The fund manager also voiced hopes for Tesla stock rallying up to $2,000 or $2,500 over the next ten years, driving the company’s overall market capitalization above $8 trillion.

Baron Capital portfolio manager and Tesla Inc (TSLA) investor Ron Baron on Tuesday threw his weight behind Elon Musk, extending support for the billionaire CEO's decision on a potential merger between SpaceX and Tesla.

Baron said in an interview with CNBC on Tuesday that almost a third of Baron Capital’s lifetime profits have been derived from investing in Musk-led companies. The firm currently manages roughly $56 billion, with approximately $15 billion in SpaceX and nearly $5 billion in Tesla.  

Regarding SpaceX’s anticipated public debut, Baron said he plans to buy more shares at the IPO.

“This is going to become the largest company on the planet,” Baron said. “I believe deeply that this company is a major game-changer. Starlink is going to be the internet for the entire planet. Nobody can do this except for them."

"I think the company over the next 10 or 15 years is going to be worth $10 trillion, $20 trillion, $30 trillion, and I could be very low," he added.

SpaceX is preparing for what is expected to be the largest initial public offering in history, targeting a valuation of up to $1.75 trillion while seeking to raise as much as $75 billion. The Elon Musk-led rocket and satellite company confidentially filed its registration statement in April and plans to launch its roadshow in early June, with shares expected to begin trading later this summer, according to Reuters.

Should Tesla And SpaceX Merge?

Addressing rumors about a possible Tesla-SpaceX merger, Baron reiterated trust in Musk’s decision-making prowess.  

"I think there's good reason why you should do it and good reasons why you shouldn't. Whatever he (Elon) decides, I'm sure there will be good rationale for it. What he decides, it's very unlikely it's not a good idea." Baron said.

In contrast, Gary Black, managing partner of The Future Fund, strongly opposes a potential merger. He previously called the idea “a solution looking for a problem” and warned it would significantly dilute Tesla shareholders by an estimated 20-25%.  

Tesla In Ten Years

Baron on Tuesday also voiced hopes for Tesla stock rallying up to $2,000 or $2,500 over the next ten years, driving the company’s overall market capitalization above $8 trillion.

This target aligns closely with the ambitious milestones in Musk’s recently approved, roughly $1 trillion performance-based pay package from late 2025.  

How Did TSLA Retail Traders React?

On Stocktwits, retail sentiment around TSLA stock stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘high’ levels.

A Stocktwits user expressed optimism for the stock to go “parabolic.”

Another user opined that the stock is “extremely overpriced” while drawing a parallel between the EV maker and Dearborn-based legacy automaker Ford.

TSLA stock has gained 34% over the past 12 months. 

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