Main shareholder Ron Baron says Tesla’s Bitcoin buy is “not shocking” and needs to research why

Ron Baron, founder of Baron Capital, is a Tesla shareholder and is a firm believer in Elon Musk’s future vision. Baron believes Tesla can grow sales to $ 1 trillion in 12 years.

Anjali Sundaram | CNBC

Billionaire Ron Baron told CNBC on Monday that he thought Tesla’s Bitcoin purchase was “unsurprising,” but the electric car maker’s long-time shareholder warned he wanted to investigate the decision-making process further before making a judgment.

Elon Musk, CEO of Tesla, has been positive about Bitcoin for some time, hence the Bitcoin announcement [is] No wonder, Baron told Becky Quick, co-host of Squawk Box.

Baron has been optimistic about Tesla for years and his eponymous investment firm, Baron Capital, has a significant stake in the electric vehicle maker.

“I’m sure Tesla has put a lot of thought into Bitcoin and I look forward to hearing the reasons behind it,” Baron added in his remarks to Quick, who read it on the air.

Tesla announced in a notice filed with the Securities and Exchange Commission Monday that it had purchased $ 1.5 billion worth of Bitcoin and plans to accept the cryptocurrency for its products.

Bitcoin price soared to a new record high on the Monday following the announcement of Tesla’s purchase, exceeding more than $ 44,000 per coin at one point.

Tesla’s shares were up more than 2.5% in premarket trading. The stock has suffered a crack in the past 12 months, up nearly 470% since its closing price of $ 852.23 on Friday.

Comments are closed.