Baron Capital's Ron Baron backs Musk on any SpaceX-Tesla merger decision

September 20, 2026 at 02:30 AM2 min

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Baron Capital founder Ron Baron said he will publicly support whatever decision Elon Musk makes on a potential SpaceX-Tesla merger. Baron, whose firm holds about $25 billion in SpaceX and $5 billion in Tesla stock, told CNBC he shared private pros and cons with Musk but declined to elaborate. His comments follow Musk's remarks on the All-In Podcast that reignited merger speculation.

Key Facts

Baron Capital holds about $25 billion in SpaceX stock and $5 billion in Tesla stock.
Baron told CNBC that early investments in Tesla and SpaceX generated around $30 billion in profits for clients out of $71 billion in lifetime profits.
Baron said Starlink alone could reach $1 trillion in revenue in 10 years, with EBITDA of $700–800 billion and a valuation of $14–15 trillion.
Baron sees Starlink's customer base growing from about 15 million to 300 million over the next 10 years.

Merger Speculation

Baron Capital founder and CEO Ron Baron is a long-time investor in both Tesla Inc and SpaceX, having begun investing in Tesla in 2014 and SpaceX in 2017. Asked about a potential merger between SpaceX and Tesla, Baron said he privately shared with Musk the reasons why he thinks this is a good idea and a bad idea. Baron declined to elaborate on those reasons during the CNBC interview. He said that whatever decision Musk makes, he will publicly support it, recalling that he told Musk, "Whatever you decide is better is what I'm going to support." Talk of a potential merger is heating up again following comments made by Musk during the All-In Podcast live summit, where Musk was interviewed virtually and SpaceX President Gwynne Shotwell was live at the event.

Starlink Valuation Outlook

Baron highlighted Starlink as one of the most undervalued assets within SpaceX. He told CNBC that Starlink alone could generate $1 trillion in revenue in 10 years. Baron projects that $1 trillion in revenue could translate into EBITDA of $700 billion to $800 billion for Starlink. Applying a multiple to that EBITDA could take Starlink's valuation to $14 trillion or $15 trillion, according to Baron. He also sees Starlink's customer base expanding from about 15 million currently to 300 million over the next decade.