Ron Baron: Elon Musk’s ‘unbelievable’ new product that all Americans will want — and ‘now’ is the time to buy stock

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Billionaire investor Ron Baron says Elon Musk's businesses have generated $30 billion in profits for his clients. Now, he's making another bullish call on Tesla — and a Sunday morning drive helps explain why.

"This car is unbelievable," Baron said during a recent CNBC interview (1).

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His enthusiasm went beyond the driver's seat.

"The time to buy the stock is now," he said of Tesla (NASDAQ: TSLA).

Baron described buying one of 250 special edition Model S vehicles produced as Tesla stopped making the model. He said he paid roughly twice the price of the earlier version and called it his favorite car he has ever owned.

But it was the self-driving technology that stole the show.

After oversleeping one Sunday morning, Baron rushed out to meet his family for breakfast in East Hampton. He couldn't remember the restaurant's address, so he entered its name into the car.

According to Baron, the car opened his garage door, backed out, navigated his long driveway and headed toward the restaurant.

"I say, oh my God, did I break something?" he recalled.

When he looked up, a large duck was crossing the road with six ducklings behind it.

Once they passed, he said, the car continued to the restaurant and parked.

While his special edition Model S is no longer being produced, Baron sees growing adoption of Tesla's Full Self-Driving technology, or FSD, as a reason to buy the stock.

"Everyone's going to want it," he said, adding, "It's going to be everywhere."

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Baron has substantial money riding on that belief.

During the interview, the host put Baron Capital's holdings at approximately $25 billion in SpaceX(NASDAQ: SPCX) and $5 billion in Tesla, based on holdings reported as of the end of June.

Baron also said his personal investments included approximately $5 billion in SpaceX and $1.5 billion in Tesla. He credited Musk investments with generating roughly $30 billion of the $71 billion in profits his firm had made for clients.