Billionaire investor Ron Baron believes that aerospace giant SpaceX could eventually become “the largest company on the planet” after its expected IPO, and his firm is heavily positioned for that outcome. Speaking to CNBC, the Baron Capital chief said that SpaceX could eventually be worth between $10 trillion and $30 trillion over the next 10 to 15 years, which he called possibly a conservative estimate. Baron Capital’s SpaceX stake is already worth about $15 billion, or a little more than one-quarter of the firm’s nearly $56 billion in assets under management.
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That position began as a $1.7 billion investment in 2017 and has grown as Baron continued buying shares through SpaceX’s twice-a-year tender offers. The potential IPO could become one of the biggest market events of the year, as SpaceX seeks a valuation of at least $1.75 trillion while raising more than $75 billion. Baron said that demand for SpaceX shares has already been extremely strong in private tender offers, which he said often become oversubscribed in one afternoon without announcements or bankers.
He believes the company’s long-term value could be driven by reusable rockets, Starlink, and future projects, such as space-based AI data centers. A SpaceX IPO could also affect the overall stock market. Indeed, major index providers are changing, or considering changing, their rules so that mega IPOs can enter benchmarks like the S&P 500 (SPY) more quickly. That could create added demand from index funds if SpaceX qualifies after going public.
What Is the Prediction for TSLA Stock?
When it comes to Elon Musk’s companies, most of them are privately held. However, retail investors can invest in his most popular company, Tesla (TSLA). Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 12 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $403.86 per share implies 6.4% downside risk.
