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Tesla Bull Ron Baron Says Elon Musk’s Twitter Stake Makes No Sense

Ron Baron, CEO of Baron Capital and one of Tesla’s largest shareholders, said Elon Musk’s 9.2% stake in Twitter, and his seat on the board, were not significant.

“I don’t think it makes sense,” he told CNBC’s “Squawk Box” on Thursday. “It’s a small investment. $3 billion for a man who’s worth $300 billion. He’s got a Tesla that’s worth a trillion (and) is going to be worth $3 or 4 trillion.”

Baron, who has been a Tesla investor since 2014, added, “There’s no way it could mean anything meaningful to him.”

Baron said her company decided not to invest in Jack Dorsey’s social media company when it found out Musk supported the company and served on the board. Indeed, most investors tend to look at the company as well as the individuals who support it before buying shares.

While Twitter’s stock jumped 27% after Musk’s investment disclosure on Monday, the company’s share price hasn’t performed particularly well in recent years compared to other US giants. technology like Apple and Microsoft.

Musk’s purchase comes less than two weeks after he slammed the company, polling people on Twitter about whether it adheres to free speech principles. “Given that Twitter serves as the de facto town square, failure to uphold the principles of free speech fundamentally undermines democracy,” Musk tweeted. “What should be done?”

Late last month, Musk also said he was considering creating a new social media platform.

Musk, who is now Twitter’s biggest shareholder, isn’t the only billionaire to take a big stake in a major media company.

Amazon founder Jeff Bezos has come under intense scrutiny after buying The Washington Post newspaper for $250 million in 2013.

After learning that Washington Post reporters were investigating his past, former President Donald Trump railed against Amazon chief Jeff Bezos in a tweetstorm. Amazon shares have fallen 6.5% since Trump’s victory, while broader markets have hit record highs.

When asked if Musk’s businesses could now face similar scrutiny, Baron said: “When you focus on something that doesn’t make sense and will never impact on anything, it saves you from looking at the big picture.”

He added: “These things, we don’t care. It’s irrelevant to me. People can pick up something. A short seller or long guy or a hedge fund is going to pick up something that you can trade on. It’s irrelevant. I don’t care.


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