Ron Baron expects SpaceX (NASDAQ:SPCX) to become the world’s largest company by a wide margin, predicting Baron Capital’s IPO investment could rise 20 to 30 times over the next 10 to 15 years.
Baron Builds His $25 Billion SpaceX Stake
Speaking on The Compound and Friends podcast episode, Baron called SpaceX an "incredible business" and said his firm’s holding had reached about $25 billion by June. Baron Capital invested about $2 billion through 27 private transactions beginning in 2017, then bought another $1 billion at the IPO to preserve its 1.25% stake.
"We were either the number one, or number two, or number three purchaser on each of these transactions," Baron said. "We don’t consider ourselves betting. We consider ourselves investing on the basis of knowledge, not bets."
Baron said SpaceX could eventually command a valuation between $20 trillion and $40 trillion. Asked whether it would become the world’s biggest company, he answered, "Yes."
SpaceX IPO Draws Optimism And Skepticism
SpaceX priced its IPO at $135 per share on June 12, raising $75 billion at a valuation of about $1.75 trillion, Reuters reported. Shares later climbed to $225.64 before falling below the offer price, giving short sellers $15.5 billion in paper profits by July 23. That reversal challenges Baron’s forecast.
Baron has made similarly bold calls before. In May, he said SpaceX would become the "largest company on the planet" and could reach $10 trillion, $20 trillion or $30 trillion, adding that he "could be very low." After the listing, he called it "day one."
Elon Musk backed that optimism, responding, "Ron is smart," to Baron’s earlier $30 trillion forecast. JPMorgan analysts also said SpaceX’s ambitions were "bigger than any company’s we’ve ever seen" and set a $225 price target, according to the Associated Press.
Morningstar disagreed. The firm valued SpaceX at $63 per share before the IPO, 53% below the offering price, saying investors assigned excessive certainty to unproven projects including reusable Starship operations and orbital data centers.
Financial Results Put Baron’s Forecast Under Spotlight
An SEC filing reviewed by AP showed SpaceX generated $18.7 billion in 2025 revenue but lost $2.6 billion from operations. The FCC said Starlink reached 10 million active users by February 2026.
Baron remains unmoved. He said his Tesla investment produced about $7.7 billion in profit but called SpaceX his firm’s "big investment," expecting greater returns.
SpaceX’s first-ever earnings report as a public company is scheduled for Tuesday, August 4, 2026, after the market closes.
Benzinga Edge Rankings indicate SpaceX Stock performs poorly on Short, Medium and Long Price Trends.
Price Action: SPCX closed 1.36% lower at $113.50 on Monday and was down another 2.11% in pre-market trading on Tuesday.
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