Billionaire Ron Baron Invests $1 Billion More in SpaceX, Bringing Total Holdings to $25 Billion
0xBroomberg
On SpaceX's first day of trading, billionaire Ron Baron bought $1 billion more instead of cashing out, pushing his total stake to $25 billion — doubling down at a $2 trillion valuation on a bet that the company can grow 10× or more over the next decade.
Everyone else was selling on IPO day — why was he buying?
Baron Capital picked up an additional $1 billion in SpaceX shares on listing day, lifting the firm's total position to roughly $25 billion.
Baron told CNBC's *Squawk Box* plainly: "I didn't want to be diluted. I wanted to use $1 billion to maintain our ownership percentage."
This means → the purchase was defensive, not speculative. IPO shares dilute existing holders; Baron spent $1 billion to buy his percentage back.
From $22 billion to $2 trillion — how did he get here?
Baron Capital first invested in SpaceX in 2017 through employee share transfers, when the company was valued at under $22 billion. It has since participated in 27 funding rounds.
As of March 31 this year, SpaceX accounted for 33% of the Baron Partners Fund ($10.4 billion in assets) and 25.5% of the Baron Asset Fund.
In plain terms = a third of a $10-billion fund sits in one company. That is not a position — it is a marriage.
Add Tesla — what does that concentration mean?
Including Tesla, roughly half the assets in some Baron funds are tied to Musk-led companies.
This reflects an investment philosophy built on concentrated, long-duration bets on a handful of companies Baron believes can reshape economic structure.
His own framing: "I'm a business investor, not a trader."
At a $2 trillion valuation, how much upside does he see?
Baron projects SpaceX will reach $20 trillion to $40 trillion in market cap over the next decade — 10× to 20× from here.
He characterizes Musk's business portfolio as a structural force capable of growing the broader economy tenfold in ten years, not merely doubling it.
This means → in Baron's framework, SpaceX is not a richly valued tech stock. It is the next layer of economic infrastructure — and that is the logic behind adding at $2 trillion.
How did the stock actually perform on day one?
SpaceX priced at $135, closed at $160.95, and hit an intraday high of $176.52.
The closing market cap topped $2.1 trillion, a first-day gain of roughly 19%.
In plain terms = the market bought the story — at least on day one. Baron is not betting on the first-day pop; he is betting on the ten-year arc.
Content is for reference only, not financial advice.