Ron Baron emphasized the growth potential of Tesla FSD and SpaceX, recommending buying despite the Fed's benchmark interest rate hike.
This marks the first interest rate hike in three years since 2023 and the first decision since Kevin Warsh took office as chairman.
Rising oil prices due to the Middle East conflict are escalating inflationary pressures, and with a robust job market persisting, the interest rate hike was unanimously decided to curb inflation.
The Fed lowered its unemployment rate forecast for this year to 4.1%, signaling its commitment to address inflation even as the economy remains strong.
This reflects the Fed's strong resolve for price stability, and the market faces uncertainty regarding further monetary tightening.
He responded by saying, “Imagine what will happen.”
This ambiguous stance is reigniting merger speculation in the market, with increasing interest in how the relationship between the two companies will evolve in the future.
He has maintained a strong relationship with Elon Musk for 16 years and is known as his primary proxy investor.
Baron's substantial investments demonstrate his deep trust in Elon Musk's vision and the growth potential of his companies.
Don’t miss the next video from this channel
When a new video goes live, we’ll turn it into an easy-to-read article like this and email it to you.
He stated that he knows the pros and cons of a merger but avoided specific comments on the matter.
This demonstrates Baron's absolute trust in Elon Musk and suggests that his investment philosophy is deeply rooted in Musk's vision.
Ron Baron asserted that as FSD (Full Self-Driving) becomes widely adopted, Tesla's scale will continue to grow, making now the time to buy Tesla stock. He predicted that FSD would be a key driver of Tesla's growth.
55% of all new customers are opting for FSD, which shows high potential with an annual growth rate of 55%.
Ron Baron shared his amazing experience of using FSD in his personal Model S to autonomously drive to a restaurant. He directly experienced a real-world success case of autonomous driving through FSD.
This actual experience became an important basis for his deep belief and confidence in Tesla.
This figure differs significantly from the 110,000 reported by some media outlets.
The officially announced subscriber count clearly shows the expanding actual user base of FSD.
This was achieved despite Tesla's own sales declining by 16% during the same period.
With sales of other EV competitors declining much faster, Tesla's market share is increasing due to a rebound effect.
Ron Baron anticipates that Starlink alone could achieve annual revenue of $1 trillion within 10 years. Multiplying this by an appropriate multiple, SpaceX's enterprise value is projected to reach between $14 trillion and $15 trillion.
This implies significant growth potential, considering SpaceX's current valuation is less than $2 trillion.
SpaceX is significantly reducing rocket launch costs, increasing Starlink's scalability. In 2010, space launch costs were $19,000 per kg, which dropped to $2,700 with the Falcon 9. Currently, the next-generation rockets, Starship and Rapid Booster, are expected to reduce costs to $1,500 per kg.
Ultimately, the goal is to lower costs to $100-$150 per kg with next-generation rockets, heralding a revolutionary change in the space industry.
The estimated launch date for Optimus robots is 2027, which still carries significant uncertainty, and it is currently difficult to provide specific revenue data. Baron appears to be focusing his investment strategy on proven businesses that are currently generating revenue, such as FSD and Starlink.
This suggests that his investment philosophy takes a conservative approach based on immediate performance and data.
Answers come from the transcript, with the exact spot cited.
Want the next video from 오늘의 테슬라 뉴스 too?
When 오늘의 테슬라 뉴스 publishes, we'll write it up like the one you just read and email it to you.
오늘의 테슬라 뉴스 published 14 in the last 7 days.
We skip Shorts.
