Ron Baron endorses Tesla stock, highlights Full Self-Driving potential

Billionaire investor Ron Baron went on CNBC’s Squawk Box on September 16 with a message that left little room for ambiguity: buy Tesla stock now. The Baron Capital founder and CEO pointed to the accelerating adoption of Tesla’s Full Self-Driving technology as the core reason for his conviction, framing FSD not as a speculative moonshot but as something approaching inevitability for the average car buyer.

Coming from someone whose firm holds roughly $5 billion in Tesla and has generated approximately $30 billion in client profits from Musk-related investments, the endorsement carries weight.

The numbers backing Baron’s bet

Tesla reported approximately 1.48 million active FSD subscriptions in Q2 2026. That figure represents a 56% increase compared to the same period the previous year, a growth rate that turns FSD from a niche add-on into a genuine business segment.

Perhaps more telling is the attach rate. About 55% of new North American Tesla deliveries now include FSD at the point of sale.

Baron Capital’s commitment to the Musk ecosystem extends well beyond Tesla. The firm has roughly $25 billion invested in SpaceX, and Baron’s personal stakes sit at approximately $1.5 billion in Tesla and $5 billion in SpaceX. He has been accumulating Tesla shares since 2014.

Druckenmiller’s parallel play

Stanley Druckenmiller’s family office added roughly $53 million in Tesla call options during Q2 2026, a move that several analysts interpreted as a targeted bet on FSD subscription growth rather than a broader play on robotaxis or the Optimus humanoid robot project.

Tesla’s expanding moat

Beyond FSD, Tesla’s competitive positioning in the US electric vehicle market has strengthened considerably. By August 2026, the company’s domestic EV market share reached 52%, up from 43% the prior year. That nine-percentage-point jump came as several legacy automakers scaled back or delayed their EV programs.

Baron’s argument essentially boils down to a compounding dynamic. Each Tesla sold is not just a vehicle transaction but a potential long-term subscription customer. And unlike car sales, which are one-time events, subscription revenue recurs quarter after quarter.

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