SpaceX Will Be 'Largest, Most Profitable Company On The Planet,' Says Veteran Elon Musk Bull Whose Funds Trail US Markets

Veteran investor Ron Baron is increasing his exposure to SpaceX ahead of its highly anticipated IPO.

• Baron Capital has submitted a $1 billion order in the upcoming SpaceX IPO.
• He estimates SpaceX has already generated about $12 billion of the $20 billion in profits his clients have earned from investments across Musk-led companies.
• While bulls see strong post-IPO demand driven by institutional investors and index inclusion, bears point to SpaceX’s reported 2025 loss and valuation concerns.

With just days to go before the much-awaited SpaceX IPO, 83-year-old billionaire investor Ron Baron is making his biggest bet yet on Elon Musk's aerospace giant, even as most of his firm's funds continue to trail the benchmark U.S. indexes.

In a client call earlier this month, the video of which was published over the weekend, the founder of New York-based Baron Capital laid out his long-term conviction in SpaceX and why he views the company as a potential lifetime holding.

Baron's Bull Case For SpaceX

Baron said investments in Musk's companies over the years have generated $20 billion in client profits, with roughly $12 billion of that coming from SpaceX alone. He expects the IPO — expected to price at around $1.5 trillion to $1.75 trillion in valuation — to be just the beginning.

"I think it's going to be worth 10, 20, or 30 trillion dollars," Baron said. "SpaceX will become the largest, most profitable company on the planet."

His take attracted Musk’s attention too, with the SpaceX CEO saying: “Maybe [the] largest in this sector of the galaxy.”

Baron also revealed that his firm has placed a $1 billion order for shares at the IPO price, a figure he arrived at by calculating what it would take to avoid dilution of his existing stake, which he pegged at roughly 1.25% of the company based on current holdings against a $1.25 trillion valuation.

"There are so many people who are huge money managers — people with two trillion, three trillion, one trillion — they don't own a share," he said, arguing that pent-up institutional demand and the inevitable inclusion of SpaceX in passive indexes would drive sustained buying pressure after the listing.

SpaceX has started marketing a $75 billion IPO at a fixed price of $135 per share, targeting a valuation of $1.8 trillion. It has already drawn double the investor demand, according to Reuters.

Ron Baron: From Tesla Skeptic To Big Musk Fan

Baron's relationship with Musk dates back to 2010, when he turned down Musk's pitch to invest in Tesla. He changed his mind after the launch of the Model S and Model X and, by 2017, had bought into Musk's vision for SpaceX as well. Their relationship warmed further in 2022, when Baron offered to back Musk's $44 billion acquisition of Twitter (now X) with cash from both his mutual funds and his personal account, according to the Wall Street Journal.

SpaceX IPO: What Bulls And Bears Are Saying

SpaceX's listing, expected to be the largest IPO in history, has drawn sharp debate. Bullish analysts expect shares to pop strongly on their Nasdaq debut this Friday. Skeptics have warned of significant drawdowns at the expense of retail investors, who have been allocated 30% of the offered shares.

The bear case centers in part on SpaceX reporting a net loss of $4.9 billion on $18.7 billion in revenue in 2025. Bulls counter with projections from Morgan Stanley, which is also one of the IPO's underwriters, pegging SpaceX's revenue at $3.4 trillion and adjusted core profit at $2.7 trillion by 2040.

For now, SpaceX's primary cash engine is Starlink, its global satellite internet service delivering high-speed broadband to remote and rural areas where traditional infrastructure is unavailable or unreliable.

SpaceX IPO: What's At Stake For Ron Baron

A strong post-IPO performance would be well-timed for Baron, whose largest fund is down this year amid a modest client exodus to competing funds. Of his firm's ETFs, only one has outpaced the S&P 500 and the Nasdaq year to date. His Baron First Principles ETF — where SpaceX carries a 2.21% weighting — is down more than 4% since its December 2025 launch.

On Stocktwits, interest in Baron's RONB ETF has surged, with followers up nearly 142% over the past three months and message volume doubling in the past 30 days. Sentiment, however, reads 'bearish,' suggesting retail traders remain skeptical of the vehicle even as they follow it closely.

"SpaceX'll be the BlackBerry of the rocket and space industry," one user wrote last month.

But a more recent wave of bullish posts has been building. "Ron Baron said the math is bullish for SpaceX! Long!" posted another.

Asked about rumors of a SpaceX-Tesla merger, Baron said: "That's not that big of a promise because I am 83. I'm not selling my shares in my lifetime. I'm not a trader. I'm just an investor investing in businesses that are run by people who I admire, who I trust, who are really smart."

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