Baron Capital CEO Ron Baron Says Time to Buy Tesla Stock Is Now

Ron Baron, founder and CEO of Baron Capital, urged investors to purchase Tesla stock immediately during a Wednesday appearance on CNBC Squawk Box, citing accelerating adoption of Full Self-Driving (FSD).

What Happened

Baron stated that "the time to buy the stock is now," arguing that FSD is "catching on" and will become increasingly prevalent. He highlighted that 55 percent of new buyers are purchasing Teslas with FSD enabled, describing the technology as "safer" and predicting it will be "everywhere." This commentary aligns with recent company data showing 1.48 million active FSD subscriptions in the second quarter, a 56 percent year-over-year increase. Baron framed this high attach rate in North America as evidence that FSD is transitioning from an enthusiast add-on to a default expectation, suggesting that software value, rather than just vehicle volume, should drive future valuation.

Why It Matters

Baron’s perspective is significant given his firm’s long-standing and substantial exposure to Tesla. Baron Capital first invested in Tesla in 2014 and currently holds approximately $5 billion in the company. According to Baron, his bets on Elon Musk-led companies, including SpaceX and Tesla, have generated about $30 billion of the $71 billion in total profits Baron Capital has delivered to clients. His current personal holdings include about $1.5 billion in Tesla, with additional exposure through firm funds. By emphasizing FSD subscription growth, Baron is reinforcing the narrative that Tesla’s software margins are becoming a primary driver of shareholder value, a metric closely watched by the market.

The Bottom Line

Ron Baron reiterated his bullish stance on Tesla, pointing to strong FSD subscription growth and a high attach rate on new vehicles as the primary reasons for immediate investment. His comments underscore the continued focus of major institutional holders on Tesla’s software monetization potential.