Ron Baron recently shared his candid views on his investment in X, the social media platform formerly known as Twitter. Speaking at the annual Baron investment conference in New York, the billionaire investor expressed his concerns about the current state of affairs.
Baron revealed that he has invested a total of $100 million in X, with $65 million coming from fund money and $35 million from his personal capital. While he downplayed the significance of this sum, he did express his hopes that his investment will ultimately pay off. It is worth noting that Elon Musk took X private in late 2022.
In comparison, Baron highlighted that Tesla Inc. and SpaceX are considered "cornerstone" investments for his firm. Together, these two companies make up 14% of Baron Capital's assets. A representative for Baron stated at the conference that the firm manages approximately $40 billion in assets, with about 10% allocated to Tesla and 4% to SpaceX.
When approached for comment on the performance of X since Musk's buyout, an email inquiry received a message stating that they were currently busy and to check back later.
According to third-party data cited by Reuters in October, X has been experiencing significant year-over-year declines in monthly ad revenue since the acquisition by Musk, with declines of at least 55% every month.
For Baron, the key to successful investing lies in holding onto investments rather than buying and selling frequently. He emphasized this approach at the conference, stating that long-term ownership is how wealth is truly created.
Elon Musk: A Visionary Obsessed with Growth and Innovation
As a professional copywriter, I have been captivated by the remarkable achievements of Elon Musk, a true visionary who is deeply invested in the future of space engineering and electric cars. Musk's relentless pursuit of his business's vision and growth is what sets him apart, and it is this quality that attracts investors like Ron Baron.
Baron, a prominent investor, shares his admiration for Musk's leadership. He believes that SpaceX and Tesla, both headed by Musk, have been able to attract the "best engineers on the planet," thanks to his unwavering dedication to his vision. This sentiment is echoed by others in the investment world, including Cathie Wood, the founder and CEO of ARK Investment Management.
Cathie Wood goes as far as referring to Musk as a "renaissance man," praising his leadership at X and Tesla. In fact, ARK Investment Management estimated that Tesla's shares could reach an astonishing $2,000 each in 2027, implying a valuation of over $6 trillion for the company. This overwhelming support has led to Tesla's shares skyrocketing by over 80% this year alone, with the company now boasting a market value of more than $680 billion.
Baron takes an even more optimistic view of Tesla's potential, specifically highlighting its autonomous-driving business. He believes that the value of this segment alone surpasses the entire market capitalization of the company, valuing it at around $1 trillion. Such a bold perspective demonstrates the extraordinary nature of Tesla as a company.
DataTrek Research aptly describes Tesla as a unique entity, unlike any other in the market. They emphasize that it cannot be categorized simply as a car company, a tech company, or even a clean energy play. Instead, Tesla represents something entirely transformative - a powerful force in the world of autonomous driving. The disruptive potential of this technology is what truly sets Tesla apart from its competitors.
In conclusion, Elon Musk's unwavering commitment to his business's vision and growth has earned him not only the admiration of high-profile investors but also the awe of individuals across various industries. Tesla's remarkable rise in the market is a testament to Musk's visionary leadership and the disruptive potential of autonomous driving. We eagerly anticipate what the future holds for this incredible company and its relentless pursuit of innovation.