In an interview with CNBC's "Squawk Box" on Wednesday, Baron Capital leader Ron Baron (Trades, Portfolio) said he has high expectations for SpaceX, the space company headed up by Tesla Inc. (TSLA, Financial) CEO Elon Musk.
After seeing his stake in Tesla make his firm 10 times its original investment, Baron said he expects similar growth from the aerospace company.
"SpaceX, I think, has a chance to be just as large as Tesla," he said.
This is setting the bar pretty high as, earlier this year, Baron said he believes Tesla has to potential to hit "at least" $1 trillion in revenue by 2030. But SpaceX just may be able to meet these great expectations since it has achieved several milestones this year, making progress with its Crew Dragon astronaut capsule, Starlink satellite internet service and next-generation Starship rocket.
As of the end of the second quarter, the Baron Partners Fund held over 8 million shares of Tesla. The stock accounts for the fund's largest holding with a weight of 6.31%.
The Seattle-based electric vehicle manufacturer has seen its stock soar over 400% year to date. With a $430.64 billion market cap, shares were trading 3.28% higher on Wednesday at $461.30.
CNBC reported the New York-based firm also disclosed it held nearly 1.3 million shares of SpaceX, which is a private company, as of Sept. 30. Baron's firm first started investing in the company in 2017, but has slowly expanded its position over time. The Baron Asset Fund disclosed it purchased $26 million worth of SpaceX stock during the company's recent $2.1 billion fundraiser, which the guru said brought the startup's valuation up to about $44 billion.
"What I want to be known as, ultimately, is not just the Tesla guy, but also the SpaceX guy," Baron said. "In the next couple years I'm going to be talking to you a lot more about SpaceX than I'm going to be able to do right now."
Watch the full clip below.
Disclosure: No positions.
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