Ron Baron, the founder and CEO of Baron Capital, is bullish on a certain company gearing up for an IPO, predicting massive returns in the years to come.
In a recent interview with CNBC, Baron expressed his optimism about SpaceX, an aerospace and artificial intelligence firm that filed for an IPO in April. He believes the company has the potential to soar in value and could even become the largest company globally.
“So when you go public, I don’t know if it’s going public at $1.5 trillion or $1.75 trillion or maybe a little bit more. But where it goes public, I think that the company over the next 10 or 15 years is going to be worth $10 trillion, $20 trillion, $30 trillion. And I could be very low. It could be very low on where it’s going to be.”
Baron attributes SpaceX’s growth prospects to the vision and drive of its CEO, Elon Musk.
“So what enabled this company? It’s him [Elon Musk]. So he comes up with the idea that you’ll be able to launch a rocket and reuse it. And no one ever did that before. And no other rocket company was interested in doing that. Because if they did, then what would happen is that there would not be a demand for as many rockets. So nobody wanted to do this.
And they always said it was impossible. They said it was impossible because nobody tried. And when they did try, nobody’s been able to accomplish it. So that’s what enabled this. That’s what enabled us to have Starlink.
After you have that, and now we have the Falcon 9 [reusable spacecraft]…
… then we decided, hey, wait, there’s a demand for space data centers instead of having data centers on our planet where it’s very, very difficult… …water is short and electricity is a problem. You don’t need the cooling in space, number one, as long as you have giant radiators.
And then electricity, which is a huge cost, you don’t need that either, because you’re using the sun. So basically, you’re getting free electricity and free cooling once you get into space.”
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