Billionaire investor Ron Baron says Elon Musk's Tesla could hit a $4 trillion valuation - and reveals a $1 billion SpaceX stake

• Tesla's valuation could grow between four- and fivefold between now and 2030, according to Ron Baron.
• "In the funds that I manage, I've been maxed out," the billionaire investor said Wednesday.

Ron Baron remains a huge backer of Tesla – and the billionaire investor revealed for the first time Wednesday that he also has over $1 billion riding on Elon Musk's spacecraft and satellite manufacturing firm SpaceX.

Speaking to CNBC about Walter Isaacson's new book, the Baron Capital founder said he believes the EV maker's valuation will soar over the next six years.

"I think Tesla in the next seven years will be about four or five times as big as it is right now in the stock market," Baron told the outlet. "In the funds that I manage, I've been maxed out."

Tesla shares are up 120% this year, surging thanks to the rise of AI as an investment theme, the Federal Reserve winding down its war on inflation, and Musk's renewed focus on the company after hiring Linda Yaccarino to replace him as CEO of X.

By Insider's calculations, the company's total market capitalization would balloon to over $4 billion if its stock price rose fivefold from its current level of around $271.

Baron added that he owns 17.5 million Tesla shares for a position worth $4.8 billion as of Wednesday's closing bell, as well as disclosing that he's built a stake of over $1 billion in SpaceX after first investing in the company in 2017.

"No company can compete [with SpaceX] because nobody can make these rockets go up and come down and land again," he told CNBC.

"What is threatened here is cargo. They're going to have rockets to go from Nevada to Australia. You can move ordinance, you can move air freight, anything you want – 35 minutes to anywhere in the world."

Baron has previously hit headlines for telling Musk to stop tweeting after the Tesla, SpaceX and X owner called a British cave diver a "pedo" back in 2018, and is a close ally to the world's richest man.

"Untethered, these things can happen," he said. "If he was conventional, they would never have happened – he's the guy who got us electric cars and got us to space."

Musk is "a very funny, engaging, smart, incredibly hardworking person," Baron added.