When you've made $13 billion betting on someone, you might think about taking some chips off the table. Ron Baron is doing the exact opposite. The billionaire investor has doubled down on Elon Musk so hard that 65% of his personal portfolio is now tied to just two companies: Tesla Inc. (TSLA) and SpaceX. And he says he's never selling.

The $400 Million Bet That Changed Everything

Baron's conviction in Musk dates back to 2014, when Baron Capital invested $400 million in Tesla. That single decision, along with subsequent investments in SpaceX, has generated somewhere between $12 billion and $13 billion in gains over the past 11 years. Not a bad return.

But here's where it gets interesting. In a recent CNBC interview, Baron laid out his thesis for why the real money is still ahead. He expects Tesla to deliver five times its current value over the next decade. For SpaceX, he's even more optimistic, predicting a 10x return over the same timeframe.

Baron acknowledges the concentration risk. About 40% of his personal wealth sits in Tesla, with another 25% in SpaceX. For Baron Capital's mutual funds, the allocation is somewhat more conservative at around 11% in Tesla, 11% in SpaceX, and a smaller stake in xAI. That xAI investment has already doubled from $350 million to $700 million, and Baron thinks it could double again at the next valuation.

When Your Biggest Problem Is Making Too Much Money

Years ago, Baron Capital actually reduced its Tesla position, not because Baron lost faith in the company, but because clients got nervous about the concentration risk. "I didn't feel uncomfortable, my clients felt uncomfortable," Baron explained. He personally didn't sell a single share during that adjustment.

Today, SpaceX and Tesla sit at the top of Baron Capital's portfolio. The fund's top 10 holdings as of November 7 include Arch Capital (ACGL), MSCI Inc. (MSCI), IDEXX Laboratories (IDXX), CoStar Group (CSGP), Guidewire Software (GWRE), Gartner Inc. (IT), Hyatt Hotels Corporation (H), and Vail Resorts (MTN). But it's those first two positions that dominate the conversation.

The Da Vinci Comparison

Baron's enthusiasm goes beyond spreadsheets and return projections. He compared Musk to Leonardo da Vinci, distinguishing him from the great industrialists of the past like Rockefeller, Carnegie, and Ford. "This guy is like Da Vinci, an artist," Baron said.

The investor highlighted that Musk continues working "crazy hours" despite already being wealthy enough to retire multiple times over. Baron believes Musk is driven by legacy and impact rather than personal wealth accumulation. "He wants to think about how people will remember him someday, what he's created."

The Next Big Thing: Humanoid Robots

Baron pointed to Tesla's Optimus Bot as the next massive opportunity. According to Baron, Musk has "full confidence" that the humanoid robot could be the biggest product ever created, with potential production reaching a billion units per year. Baron clearly buys into Musk's vision that Optimus could be genuinely labor-saving and improve quality of life broadly.

The Baron Capital founder also referenced Musk's new pay package at Tesla, which requires substantial value creation for the CEO to receive compensation. Baron fully expects those milestones to be hit.

No Exit Strategy

When asked about his exit strategy, Baron was unambiguous: "I don't expect to sell in my lifetime Tesla or SpaceX, either one." For Baron Capital's funds, he's also not planning to sell anytime soon. It's a remarkable statement from someone who's already sitting on one of the most successful venture bets in modern investing history.

Baron's conviction represents more than just financial optimism. It's a bet that Musk's ventures will continue reshaping multiple industries, from automotive and energy to space exploration and artificial intelligence. Whether you think that's visionary or reckless probably depends on how you feel about concentration risk and Elon Musk. Baron clearly knows where he stands.