Why This Investor is Betting Big on Tesla

A Well-Known Investor Sees Opportunity in the Market

Ron Baron, a prominent investor, remains unfazed by the recent downturn in tech stocks. He views this period as an opportunity to find valuable investments rather than a cause for concern. During an appearance on CNBC's "Squawk Box," Baron shared his perspective, stating that he is actively looking for the best opportunities in the market.

Confidence in Tesla

Baron is particularly bullish on Tesla. He admitted to selling some of Baron Funds' Tesla shares in the past due to pressure from clients and the media. However, he emphasized that he has not sold any of his personal Tesla shares. In fact, approximately 40% of his personal wealth is invested in Tesla, with another 25% in SpaceX and around 35% in Baron mutual funds.

Market Trends and Future Prospects

Tesla's stock has decreased by 18% from its peak over the past year. This decline is part of a broader trend where investors are reassessing tech stocks, particularly those related to artificial intelligence. Despite this, Baron remains optimistic. He has already made about $8 billion from Tesla and believes he could make even more in the next decade.

Long-Term Commitment

Baron has a long-term commitment to Tesla and SpaceX. He recalled a promise he made to the board of his mutual funds decades ago. He told them that if they allowed him to invest in public stocks, he would never sell his shares in Tesla or SpaceX. He stated, "I will not sell a single share of my shares until my clients sold 100% of their shares. . . . And I don't expect to sell in my lifetime Tesla or SpaceX."

This commitment underscores Baron's strong belief in these companies. While others might be nervous about the tech selloff, Baron sees it as an opportunity to buy more.