Ron Baron, a longstanding investor in Tesla and SpaceX, recently disclosed in an interview that he has discussed the potential merger of the two companies with Elon Musk, while affirming his full support for whichever decision Musk ultimately makes. Baron initiated his investment in Tesla back in 2014, followed by an investment in SpaceX in 2017. Today, his firm, Baron Capital, maintains holdings worth roughly $25 billion in SpaceX and $5 billion in Tesla stock.

Baron highlighted that his early bets on both companies have generated around $30 billion in gains for Baron Capital clients, representing a substantial portion of the firm's cumulative client profits, which total $71 billion. When questioned about the feasibility of a SpaceX-Tesla combination, Baron said he had privately shared his perspective on whether the idea was sound or flawed with Musk, though he declined to elaborate on those specific reasons during the interview.

The investor stated that, ultimately, he would publicly back whatever decision Musk makes, recalling that he told Musk directly, "I will support whichever course of action you believe is superior." Beyond the merger speculation, Baron also predicted a significant surge in SpaceX's valuation in the years ahead, pointing to the company's Starlink business as one of the most undervalued assets in the market.

"I believe that just the Starlink segment alone could see revenue hit the trillion-dollar mark within a decade," Baron asserted. He projected that this $1 trillion in revenue would translate into $700 billion to $800 billion in EBITDA for Starlink. Applying a valuation multiple to these earnings, Baron estimates that Starlink could be worth as much as $14 trillion to $15 trillion. The veteran investor further forecasts that Starlink's user base will expand from its current 15 million subscribers to approximately 300 million over the next ten years.