Baron Capital's Ron Baron Makes Bullish Case for Tesla Stock

Ron Baron, the founder of Baron Capital, told CNBC on Wednesday that investors should buy Tesla stock now, citing the company's self-driving software as the key catalyst for future gains.

Baron's firm owns approximately $5 billion in Tesla shares and about $25 billion in SpaceX, which makes it one of the biggest external investors in Elon Musk's ventures.

Baron Cites FSD Adoption and Expanding Market Share

Baron noted that Tesla's Full Self-Driving package, the paid feature that handles steering while the driver remains in the car, is gaining traction quickly. He estimated growth at 55% annually.

Tesla's own second-quarter numbers are somewhat more conservative. The company logged 1.48 million active FSD subscriptions, a 56% year-over-year increase, and 55% of new North American deliveries included the software at purchase.

RON BARON SAYS — “NOW” IS THE TIME TO BUY $TSLA STOCK 👀

He’s extremely bullish ! pic.twitter.com/xq50RDzLHM

— TheSonOfWalkley (@TheSonOfWalkley) September 16, 2026

Baron also claimed Tesla's US market share is increasing as traditional automakers pull back on electric vehicle (EV) plans. Motor Intelligence data, as reported by the Wall Street Journal, shows Tesla holding 52% of US EV sales through August, up from 43%.

That share gain came while the overall market contracted. US EV sales fell 30% during that period, and Tesla's own US deliveries dropped 16% to 325,351.

Analyst Price Targets Diverge as Musk Hints at Merger

Tesla shares traded around $358 on Wednesday, up 0.3%, giving the company a market value of roughly $1.4 trillion, according to Yahoo Finance.

TipRanks data shows 26 analysts rating the stock a Moderate Buy, with an average price target of $377.08. The highest target is $505 and the lowest is $24.86, across 11 buys, 12 holds, and three sells. Wells Fargo, one of the bearish voices, has a sell call valuing the shares at $130.

Baron's comments follow Musk, Tesla's CEO, again refusing to dismiss the possibility of merging the carmaker into SpaceX. At the All-In Summit this week, he said the two companies already cooperate closely.

“With all this collaboration, on so many levels, who can imagine what action one might take when there’s so much close collaboration in so many areas,” Musk said, speaking at the All-In Summit.

BeInCrypto reported Tesla SpaceX merger odds of just 18% for an announcement this year. Baron said he will support whichever option Musk chooses.

Tesla's next delivery update will test Baron's optimism, revealing whether record deliveries and FSD demand stay strong while US EV sales continue to shrink.