Tesla CEO Elon Musk assured billionaire Ron Baron he would make “two to three times” his cash when he invested $100 million in Musk’s take-private offer for Twitter, Baron stated Tuesday on CNBC’s “Squawk Box.”
Baron has actually long been bullish on Tesla, informing CNBC’s Becky Quick that Musk made Baron “$5 billion so far, on a $400 million investment.” In 2021, the financier informed CNBC that he held nearly 6 million Tesla shares through his financial investment company, BaronCapital
Baron’s $100 million Twitter financial investment was asserted on his long time faith in Musk as an executive and in his marketing competence, he stated.
“I don’t want to talk more about Twitter, because I’m not the expert on it yet, but he explained when we made our investment that he saw that there was a lot of cost there, it was incredibly poorly run,” Baron stated Tuesday.
Musk’s acquisition of Twitter has actually been stuffed and, by Musk’s own recommendation, “extremely tough.” Since he closed his $44 billion acquisition of Twitter in October, the business has actually carried out mass layoffs, withdrawed a “forever” work-from-home policy, and been taken legal action against numerous times for failure to pay costs, consisting of personal jet costs and lease at Twitter’s San Francisco head office.
On Sunday, Musk stated Twitter was “now trending to breakeven.”
Baron wasn’t shaken by Twitter’s evident close shave with personal bankruptcy.
“He’s the best-known man in the world, I guess,” Baron stated. “Everyone else spends $1,000 to market a car, he spends nothing, because everyone knows Twitter.”
“He spends nothing because everyone knows who he is,” Baron stated.
Clarification: This story has actually been modified to clarify that Ron Baron stated Elon Musk assured Baron that he would make multiples on his Twitter financial investment. A previous variation was uncertain.
