Ron Baron says he won’t sell a single personal Tesla share despite nosedive

Billionaire investor Ron Baron is doubling down on his support for Tesla amidst the recent sell-off that saw the stock plummet 15% in a single day, marking its largest decline since September 2020. In a recent interview on CNBC’s “Squawk Box,” Baron expressed his confidence in the long-term potential of the electric vehicle company, stating that he believes Tesla’s current valuation presents a significant buying opportunity.

Baron, the founder of Baron Capital, initially invested $400 million in Tesla between 2014 and 2016, a decision that has paid off handsomely as the company has gained mainstream acceptance and seen its stock price soar. Tesla now represents 12% of Baron’s entire portfolio across various funds, underscoring his conviction in the company’s future growth prospects.

Despite Tesla’s recent struggles in the market, Baron remains unwavering in his commitment to the stock. He emphasized that he believes Tesla has the potential to deliver significant returns over the next decade, far exceeding his initial expectations. This bullish outlook is supported by Baron’s decision to hold onto his personal Tesla shares, pledging not to sell a single share until he has liquidated all client positions.

Elon Musk, the controversial CEO of Tesla, recently made headlines for his decision to take on a major role in the Trump administration’s Department of Government Efficiency. This move has raised concerns among investors about the potential impact on Tesla’s operations, with Musk himself acknowledging the challenges of running his businesses amidst his new responsibilities.

Baron, however, remains optimistic about Musk’s ability to navigate these challenges, noting that the CEO is more energized than ever about his business ventures. While he hopes that Musk will scale back his public visibility to focus on driving operational excellence, Baron is confident in Tesla’s long-term prospects under Musk’s leadership.

As Tesla continues to face volatility in the market, Baron’s steadfast support for the company serves as a testament to his confidence in its future success. With a long-term investment horizon and a deep conviction in Tesla’s disruptive potential, Baron remains a steadfast believer in the electric vehicle pioneer’s ability to reshape the automotive industry.