Now is the time to buy TSLA; FSD adoption is accelerating with 55% growth.

New video with legendary billionaire investor Ron Baron talking Tesla.

And and $5 billion in Tesla. So, that's more than $30 billion um in assets under management in those two stocks. the Baron Capital funds all under Ron Baron's company umbrella, collectively, they're number one and two largest position, SpaceX and Tesla.

SpaceX stock and Tesla stock also my two lightest holdings, although not in the same order as Baron Capital. Although, actually they're my only two holdings, so of course they're my top two.

Look at your next 13 stocks. And it's companies we've known for a long time that you've talked to us about. Hyatt, MSCI, uh Spotify, Charles Schwab. But all of those next 13 stocks combined, your holdings are only about 15 and 1/2 billion dollars.

So, you are really an Elon Musk proxy at this point um in terms of what you've done. A lot of that's been because the shares you've bought have risen so dramatically. The price.

It's also worth considering the fact that SpaceX and Tesla are far and away the two largest positions in the Baron funds in total. At least when it comes to SpaceX and Tesla, I think the Baron Capital philosophy is let your winners ride.

Tell us what you think about where things stand with Tesla, where things stand with SpaceX. You've been a long-time booster. I I just want to give you one little story about Tesla.

And so, uh they made a car, uh the Model S, and they stopped making it and they had 250 more that they made that were special. Cost twice as much as the ones they had before, and I bought one of them.

And uh all the cars have self-driving. If you want it, you pay $100 a month.

And uh uh so, we have one out in East Hampton, and it is my favorite car I've ever had. picture of the front of our quarterly report. And I overslept on Sunday morning. So, I said, "Oh my god, every I'm looking and no one's here."

So, I uh take a quick shower, run out to my car that's in the garage. Uh I didn't remember the address. I pushed the name of the store we're going of the restaurant we're going to.

Uh then it says self-driving, it opens up my garage door, pulls out backwards, drives around my driveway, which is really long, opens up the gate in front of the property, opens it up, drives to the you know, a little bit more in the street, looks both ways, pulls onto the street, makes a left-hand turn, goes for two blocks, makes a right-hand turn, goes for two blocks, then makes a left-hand turn, and I'm not even paying attention.

Makes a left-hand turn, and all of a sudden stops short. I say, "Oh my god, did I break something?" And then I look out, and I'm watching the front of the car, and there's a large duck walking across the road with six little ducklings behind it.

It stopped for the ducks. And then the ducks pass, the car starts up again, goes to Main Street, makes a right, goes into the parking lot, and parks right next to the restaurant that was at Stop for Ducks. This car is unbelievable.

That's a great story. Of course, not the first time. I've seen plenty of videos of exactly this. Tesla's featured them themselves in some of their presentations stopping for ducks, geese, you name it.

My sons have driven from New York to here. You drive in New York. You have to try this car. I'm getting you a car to try if you want it. Everyone's going to want it. And he says if it's like driving a horse and buggy if you don't have this at some point.

But but there's there's uh there's want me to get one When they made 250 of them that. There's no more. But in the market, they're now selling for used worth a lot more than I actually paid for it.

And it was I paid twice what the S's are. So, uh yeah, I'm never selling it.

What would What would that be? 200? 2 160, 170, something like that. what it went for? It went for 80. Are you supposed to be Are you supposed to be driving it without paying attention?

I thought the rules were still technically that you were supposed to be

and you And if it um makes a shaking sound, you pick up the wheel and you start driving again. But you don't really need it. And then And driving at night in the Hamptons, it's dark and there's not lights and It sees more than you do. Yeah, much better than you do.

we do, let let's let's talk about all of those things, but let's also talk about what people are looking and valuing Tesla at right now. And And there's a huge question as to whether Elon Musk is going to wrap Tesla into SpaceX, buy it.

I don't think there's any outstanding question about this. It's definitely going to be proposed. The only real question is will enough Tesla shareholders vote to approve this that it actually happens.

Those who missed recently at the All-in Summit, Elon Musk was asked point-blank, "So, why do you still have two companies?" His answer to that question tells you everything you need to know.

It's not a matter of if, but when this gets put to investors to vote on.

was even asked that in a podcast yesterday. I think that he and Gwynne were on yesterday or the day before. And he kind of didn't knock the idea down.

How How do you feel as somebody who owns, you know, $25 billion worth of SpaceX and more than $5 billion worth of Tesla? How do you feel about SpaceX making a bid for Tesla and wrapping it in?

Um I I told him that I gave him reasons why I thought it was good and why I thought it wasn't. And And I said that, you know, I'm not someone who makes the decision, and you're the guy.

And whatever you decide is better is what I'm going to support. And so, anything he says is better, I'm supporting. And I gave him reasons why both it's good and why it's not good.

by now, the prediction was inroads would be occurring with the other auto makers into Tesla's market share in the United States. Now, just a couple days ago, it came out Tesla's market share is increasing again because a lot

Kind of wild to think, but many of these so-called competitors that we were told was going to kill Tesla, you know, the competition's coming, just wait till the big boys arrive, wait till the big automotive companies make their compelling electric vehicles, and then Tesla's cooked.

It turns out after lots of plans and publicly stated goals that sounded ridiculous at the time, at least in the United States, just about everyone of the so-called competitors, Ford, GM, pick your company, dipped their toes in the water, talked a lot of about Tesla, suggested they'd have 400 trillion different models of electric vehicle yesterday, and have since done the whole Homer backing into the hedge meme, abandoning their plans, scaling back, and just giving the up, which honestly was the right thing to do, but they could have saved a lot of money by not attempting to pursue electric vehicles in the first place.

Now, here's a caveat. They were already too late trying. Back in 2012, when Tesla's Model S was released and won literally every award ever in the automotive industry, that was the moment all leaders at legacy auto company should have said, "Holy these things are possible.

They can be amazing. We need to pursue. We need to go all in, otherwise we're cooked." Instead, they didn't do for about a decade, then started panicking around 2020 or so, taking almost no action.

At that point, it was already too late, but they hadn't realized that. I guess they're slow to realize everything. So, they poured tens and tens and tens of billions of dollars into attempting to compete with Tesla in electric vehicles, and now they're all just giving up.

This is why Tesla's {quote} and {unquote} market share is miraculously growing again in the US, despite all of the so-called competition.

But, all the legacy makers are not going to go in, fall in on on the EV. So, suddenly it's just And to buy a Tesla, you may not The other ones need People need to buy them just to migrate to EV. With a Tesla, you just want to own a Tesla.

They lost billions of dollars, other And they just tried to do shortcuts.

The Tesla market share in the market share in in Europe, it's incredible. And everywhere in the world, it's incredible. Everywhere. So, they're the best. But, you might not want an EV. You might You might want a Tesla.

I don't want to spend too much time on Tesla, but I think Tesla is the time to buy the stock is now. All this FSD is is catching on, and it's going to be bigger and bigger and bigger, and this is going to drive you know, they have a billion a million four people now are on this driving and growing 55% overall increasing year and and everyone 55% of the new people that are getting it or buying this with the with the self drive and it's going to be everywhere. It's safer.

more if you think this is the time or do you think you're overexposed or at least as exposed as I have 30 billion dollars invested.

Yeah, [laughter] but it's 25 and five higher. Um, that's that's enough. But personally, the biggest That's pretty funny. 30 billion dollars of Tesla stock. I think that's enough, too.

The reason SpaceX and Tesla have such enormous positions in their funds wasn't because they bought those positions all the way up. It's just they bought heavy and the positions grew phenomenally.

And Ron just said that he believes that now is the time to be buying Tesla stock. Or if you happen to hold a few tens of billions of dollars of Tesla stock, maybe you've already got enough, maybe he would then just suggest continue to hold.

And for what it's worth, I am doing exactly that. The FSD take rate in the United States last quarter on all new Tesla vehicles sold was over 50% was 55% exactly. And this is before it's on supervised.

I remind you that FSD supervised is still not available in most countries on Earth. It does have an existing fleet of about 10 million vehicles out there. Imagine what happens if FSD supervised gets approved in country after country after country.

More people obviously will now subscribe and as it becomes more capable, the take rate will increase on new vehicles plus existing owners. There'll be a step change increase in adoption everywhere that it goes from supervised to unsupervised.

And at the same time this is happening they're also scaling their cyber caps. So just quietly I think Ron might have a bit of a point about where Tesla's headed over the next half decade or so.

Investments I have are uh SpaceX. Um which is about $5 billion and then a billion and a half Personally? Personally. A billion and a half in Tesla and uh about a billion eight in our mutual funds and uh which is pretty cool considering that 1970 my net worth was minus $15,000 and I didn't have enough credit to buy a telephone.

Interesting. He just told the size of the positions in SpaceX which is significantly more than his Tesla holdings. This is personal not Baron Capital's but his own personal holdings.

He's got a load more SpaceX than he does Tesla. But the Baron mutual fund, his own product, isn't the number one holding. Ron just disclosed $8.3 billion in positions, $1.5 billion in Tesla stock, $1.8 billion in the Baron mutual fund, and $5 billion in SpaceX stock.

That makes SpaceX stock alone about 60% by weight. I'm not including the additional SpaceX stock held in the Baron mutual fund. Incredible. For what it's worth I'd like my stock portfolio, if I had a magic wand at least, to be somewhere around 69% SpaceX stock and 42% Tesla.

My new 20-year Tesla and SpaceX valuation model is now also live on Patreon to supporters at the investor level and above.