The founder and CEO of investment management firm Baron Capital, Ron Baron, believes that a company preparing for an initial public offering (IPO) can generate huge returns in the coming years.
In a new CNBC interview, Baron say that aerospace and artificial intelligence company SpaceX, which filed for a stock exchange in April, is poised to multiply in value and potentially “become the largest company in the world.”
https://www.youtube.com/watch?v=FcZiyBgHiJo [03:52] “So if you go public, I don’t know if it’s going to go public at $1.5 trillion, $1.75 trillion or maybe a little bit more. But if it goes public, I think the company will be worth $10 trillion, $20 trillion, $30 trillion over the next 10 to 15 years. And I could be very low. It could be very low where it will be.”
According to Baron, SpaceX’s growth will be driven by the vision and ambitions of its founder and CEO, Elon Musk.
[06:12] “So what made this company possible? It’s him [Elon Musk]. So he comes up with the idea that you can launch a rocket and reuse it. And no one has ever done that before. And no other rocket company was interested in that. Because if they did, there would no longer be a demand for so many missiles. So no one wanted to do this.
And they always said it was impossible. They said it was impossible because no one tried. And when they tried, no one was able to accomplish it. So that’s what made this possible. That’s what allowed us to have Starlink.
After you’ve had that, and now we have the Falcon 9 [reusable spacecraft]…
…then we decided, hey, wait, there is a demand for data centers in space instead of data centers on our planet where it is very, very difficult… …water is scarce and electricity is a problem. You don’t need room cooling, number one, as long as you have giant radiators.
And then electricity, which is a huge expense, you don’t need it because you use the sun. So basically you get free electricity and free cooling as soon as you go into space.”
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