Ron Baron, founder of Baron Capital, stated he will publicly support any decision Elon Musk makes regarding a potential merger between Tesla Inc (NASDAQ: TSLA) and SpaceX (NASDAQ: SPCX). Baron emphasized that Musk knows best for the companies' future.

Baron Capital has invested in Tesla since 2014 and SpaceX since 2017. The firm currently holds approximately $25 billion in SpaceX stock and $5 billion in Tesla stock. These early investments have generated around $30 billion in profits for clients, contributing to the firm's lifetime profit total of $71 billion.

Merger Stance

Baron told CNBC that he privately shared both the positive and negative aspects of a merger with Musk but declined to elaborate on those specific reasons during the interview. He recalled telling Musk, "Whatever you decide is better is what I’m going to support."

Speculation regarding the merger intensified after comments made by Musk during the All-In Podcast live summit, where SpaceX President Gwynne Shotwell was also present.

Starlink Valuation Outlook

Beyond the merger talks, Baron highlighted significant growth potential for SpaceX’s Starlink unit. He described it as one of the most undervalued assets within the company.

Baron projected that Starlink could generate $1 trillion in revenue over the next decade. He estimated this would translate into $700 billion to $800 billion in EBITDA. Applying a multiple to these earnings, he suggested a potential valuation of $14 trillion or $15 trillion.

What the Numbers Show

The scale of Baron Capital’s exposure underscores the strategic importance of the Musk-led ecosystem. With $30 billion in realized profits from Tesla and SpaceX out of a $71 billion lifetime total, nearly 42% of the firm's historical gains are derived from just these two holdings. This concentration highlights how heavily the fund's performance relies on the continued operational success and valuation growth of Musk's primary ventures.

Market Movement

SpaceX shares rose 5.3% to $151.10 on Wednesday. The stock trades within a 52-week range of $104.83 to $225.64.

SpaceX (NASDAQ: SPCX) CEO Elon Musk stated the company will launch Nvidia VR NLV72 AI computers in space next year. The claim contrasts with internal investor materials that target initial demonstrations by late 2027.

Musk posted on X on September 13, 2026, expressing high confidence in the timeline. The hardware refers to a space-adapted version of Nvidia Corp.'s Vera Rubin NVL72 rack. This system utilizes 36 Vera CPUs and 72 Rubin GPUs. Musk described the design, dubbed the Starmind AI satellite, as a radical simplification of the normal NVL72 rack. He noted SpaceX would deploy versions both on the ground and in orbit.

Internal Roadmap Divergence

SpaceX's investor materials present a more cautious schedule. Ahead of its June initial public offering, executives Gwynne Shotwell and Bret Johnsen told prospective investors the company aims to launch initial orbital AI-computing demonstrations by late 2027. The IPO filing cited as early as 2028 for broader deployment. Musk's public next year framing sits well ahead of this internal roadmap. Reuters reported Starship, the reusable rocket meant to carry this hardware affordably, remains years behind his original targets.

Technical and Market Context

Physics presents significant obstacles for orbital data centers. Space lacks an atmosphere, making conduction and convection unavailable. Heat can only be shed through radiators. A rack pulling the power of dozens of Rubin GPUs generates far more waste heat than any system flown to date. Rival Starcloud has flown a single Nvidia H100 chip and is still years from a multi-GPU deployment. This underscores the magnitude of an orbital NVL72-class machine.

Nvidia shares trade near $218 amid broader scrutiny of AI infrastructure spending. This backdrop makes SpaceX's orbital ambitions a live test of investor patience. Musk's timelines have slipped previously on Starship test flights and Full Self-Driving. A working orbital NVL72 by next year would represent a milestone. A demonstrator unit hitting orbit would count as progress toward it.

SpaceX stock was up 0.63% at $152.16 at the time of publication Monday, according to Benzinga Pro market data.

What the Numbers Show

The divergence between Musk's public timeline and the company's IPO filing highlights a strategic communication gap. While the public statement targets next year, the formal investor documentation anchors expectations to late 2027 or 2028. This suggests the next year target may refer to a preliminary demonstrator rather than the full-scale commercial deployment outlined in the prospectus.