Elon Musk, the visionary leader behind Tesla and SpaceX, has recently admitted to running his businesses "with great difficulty." Despite these challenges, Ron Baron, a long-time investor in Tesla, remains steadfast in his support of the electric vehicle giant. This comes amid a tumultuous period for Tesla, as its stock experienced a significant 15% plunge on Monday, marking its most considerable one-day loss since September 2020. The company is also enduring its longest weekly decline since it went public on the Nasdaq in 2010.
Musk's recent appointment to lead Trump's advisory Department of Government Efficiency has added another layer to his complex responsibilities. This department is spearheading a controversial initiative aimed at reducing federal government spending and slashing employee headcount across several agencies. Musk's involvement in Washington, D.C. has coincided with a rollercoaster ride for Tesla shares, fueling uncertainty among investors.
Ron Baron, however, stands firm in his commitment to Tesla. As of the end of 2024, the electric vehicle company comprises 12% of Baron's entire portfolio across various funds. He initially invested $400 million in Tesla between 2014 and 2016, a decision that has since yielded billions of dollars as Tesla gained mainstream acceptance.
"I'm the last in, I'll be the last out. So I won't sell a single share personally until I sell all the shares for clients, and that's what I've done," said Ron Baron.
Even as Tesla's share price fluctuates, Baron expressed disbelief at their current valuation.
"I can't believe how cheap they are, things that we look at," Baron remarked.
Baron's commitment to Tesla is evident despite having to trim his holdings when they became too large in his portfolio during the second quarter last year. His personal shares in Tesla would be the last he would consider selling when it comes to managing his portfolio.
"I would hope that he would be a little less visible, but he feels that this is the way he's going to get things done," Baron noted regarding Musk's high-profile roles.