In a recent conversation on CNBC, Ron Baron, Chairman and CEO of Baron Capital, shared his bullish outlook on Tesla and SpaceX, underscoring his confidence in Elon Musk’s visionary leadership and the transformative potential of their technologies.

Baron highlighted Tesla’s impressive growth trajectory: “We’ve seen Tesla grow from 40,000 cars a year to 1.8 million. The business is three times bigger.” His optimism isn’t just based on past performance; he foresees even more significant achievements. “I think SpaceX is going to be enormous,” Baron enthused, projecting, “We’ll make twenty times our investment in SpaceX over the next fifteen years.”

Despite recent fluctuations in Tesla’s stock, which some investors found disheartening, Baron’s faith in the electric vehicle giant remains unshaken. He explained, “The stock is down, not because of the quarter. People are worried Elon might shift too heavily to robotaxis.” He swiftly added, “But think about the potential! Autonomous driving is going to revolutionize how we think about travel.”

Baron is particularly excited about the shift towards all-electric vehicles, a market where he believes Tesla continues to lead robustly. “All the cars will be electric,” he stated unequivocally. “And I think the hybrid is just a holding action. Electric is the future.”

Regarding Tesla’s stock performance and market valuation, Baron shared, “It wasn’t that we didn’t believe in Tesla anymore, but the investment became too large a portion of our portfolio.” He reassured, “We’re always thinking about how large the position should be.”

Baron is enthusiastic about Tesla’s direction under Musk’s leadership, particularly with the push towards more affordable electric vehicles and the expansion into robotaxis. “What they’re doing with AI… it’s going to be huge,” he predicted. During his visit to California, he experienced Tesla’s autonomous technology firsthand: “We punched in the address, and the car just drove us there, perfectly navigating traffic and obeying traffic signs,” he recounted with amazement.

Despite the challenges and skepticism, Baron’s discussion reflected a deep-seated belief in Musk’s companies’ transformative impact. “Tesla is everywhere. If they can execute on these robotaxis and produce these low-cost cars… we’re looking at a whole new paradigm,” he declared.

Baron’s insights not only highlight the potential growth in specific sectors but also underscore steadfast confidence in Musk’s technological innovations’ broader implications for the future of transportation and space exploration.