The founder of Baron Capital told investors that SpaceX (SPCX) could be worth $40 trillion in the next 10 to 15 years.
For context, that number is close to the value of every public company in the United States combined today.
Baron is not a stranger to calls like this. He made a similar bet on Tesla years before most investors would touch it, and it paid off in a big way.
Now he is pointing that same conviction at Elon Musk's rocket and satellite company, and he has put real money behind the forecast.
For investors watching SPCX fluctuate since its June debut, the question is simple. Is this a serious long-term call, or a number so large it stops meaning anything?
Speaking on The Compound and Friends podcast, Ron Baron said SpaceX could eventually command a valuation between $20 trillion and $40 trillion, Yahoo Finance reported.
Asked directly if it would become the world's biggest company, he answered yes.
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This is not a first-time guess. Back in May, ahead of the company's initial public offering, Baron said SpaceX could reach $10 trillion, $20 trillion, or $30 trillion, and added that he might be aiming too low.
He has now raised that ceiling. The starting point for his math is the company's IPO valuation of roughly $2 trillion.
Baron thinks that base grows 20 to 30 times over the next decade, an outcome he compares directly to his early Tesla position.
Baron argues that treating SpaceX as only a rocket company misses where the real value sits. He builds the forecast on three parts of the business.
The first is Starlink, the satellite internet network.