Baron Capital founder and CEO Ron Baron has been an investor in Tesla Inc (NASDAQ:TSLA) since 2014 and one of the biggest bulls for the stock. In a recent interview, Baron tells investors the stock is undervalued and he has a story about ducks to prove it.
Ron Baron on Tesla FSD
An early investment in Tesla and subsequent investment in SpaceX (NASDAQ:SPCX) has helped Baron Capital make $30 billion in profits for the company’s clients.
Baron credited Tesla and SpaceX as being nearly half of the firm’s total $71 billion in profits for clients in an interview with CNBC Wednesday.
Today, Baron Capital has around $25 billion in SpaceX stock and $5 billion in Tesla stock. Baron says both companies are undervalued.
Baron told CNBC he wanted to tell a story about buying one of the last Tesla Model S vehicles ever made, the limited edition ones that came at double the cost.
"My favorite car I’ve ever had," Baron said.
Baron recalled using FSD to drive him to a breakfast restaurant when he was running late. When the vehicle stopped unexpectedly, Baron looked out the windshield and noticed the Model S had stopped for a duck and six little ducklings crossing the road.
"This car is unbelievable."
Baron said the self-driving capabilities are better than most human drivers can accomplish on their own, including stopping for ducks that humans might not have seen quickly enough.
What’s Next for Tesla Stock
While Baron is not buying more Tesla stock on top of his already large share, he thinks investors have a clear opportunity right now.
"I think Tesla, the time to buy the stock is now," Baron told CNBC.
A big part of the thesis is Tesla’s FSD subscription service that is growing in size.
"FSD is catching on, going to be bigger and better."
Tesla FSD subscriptions hit 1.48 million in the second quarter, up 56% year-over-year.
Baron believes the FSD story for Tesla is one of the biggest reasons to be bullish on the stock.
Tesla Stock Price Action
Tesla stock is up 1.7% to $362.64 on Wednesday versus a 52-week trading range of $297.38 to $498.82. Tesla shares are down 17.2% year-to-date in 2026.
Photo: Tesla FSD Image Via Shutterstock
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