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Ron Baron, whose Baron Capital holds roughly $5 billion in Tesla (NASDAQ: TSLA) shares, told CNBC's Squawk Box the stock is a buy today, citing 11 million Full Self-Driving users and 55% year-over-year growth in new FSD adoption.
The thesis arrives with Tesla trading at $357.83, down 20.43% year to date, operating margin compressed to 1.4%, and free cash flow swung negative. The bull case rests on two legs.
Baron's 11 million user figure aligns with Tesla's own Q2 2026 data: active FSD subscriptions reached 1.48 million, up 56% year over year, and the attach rate on new North American deliveries exceeded 55%.
On Tesla's July 22 earnings call, Musk put it plainly: "I think for a lot of people, they're actually buying Tesla full self-driving with a car attached as opposed to a car with FSD." Baron added a personal data point, describing how his Model S navigated his East Hampton property unassisted, opened the garage and gate, made turns, and stopped for ducks crossing the road.
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