Tesla investor Ron Baron expects exponential growth for Elon Musk's car company and SpaceX

• Ron Baron told CNBC on Tuesday he believes "there's 10 times more to go" on growth with Tesla. He also said SpaceX will grow by a multiple of 20 in the next 10 years.
• Baron's eponymous investment firm holds more than 1.6 million Tesla shares and 814,595 shares of privately held SpaceX.
• The billionaire buy-and-hold investor also said he would like to have more money to purchase additional Tesla shares.

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Billionaire investor Ron Baron believes there's still plenty of room for growth for Elon Musk's Tesla and SpaceX companies.

Baron said Tuesday morning on "Squawk Box" that he believes "there's 10 times more to go" with Tesla. He also said SpaceX, a privately held company, will grow by a multiple of 20 in the next 10 years. He previously predicted similar growth for Tesla. 

"That is an amazing opportunity as well," Baron said regarding SpaceX. The company launched a pair of NASA astronauts on May 30, marking a historic first for SpaceX and a crucial step forward for the U.S. space program. 

Baron's comments come a day after Tesla shares hit a new record closing price of $949.92 on Monday after opening at $919, partly in response to electric vehicle sales data out of China for the month of May.

According to the China Passenger Car Association, Tesla sold 11,095 of its made-in-Shanghai Model 3 electric sedans to China-based customers in May, Reuters reported. Overall, Tesla vehicle sales in China increased by 205% from a slump in April attributed to Covid-19 impacts on consumers and businesses in China 

Baron's eponymous investment firm, with over $32 billion in assets under management, holds more than 1.6 million Tesla shares. They were purchased at an average cost per share of $219.02, according to the firm. It also owns 814,595 shares of SpaceX, which it first purchased in September 2017. The firm most recently increased that stake in December.

SpaceX founder Elon Musk gestures to the audience after being recognized by President Donald Trump at NASA's Vehicle Assembly Building following the successful launch of a Falcon 9 rocket with the Crew Dragon spacecraft from Kennedy Space Center, May 30, 2020.

Paul Hennessy | SOPA Images | Getty Images

Baron, CEO and chairman of Baron Capital, said Tesla shares have quadrupled for the firm. He previously said the company expects to make 20 times its money in Tesla. 

The billionaire buy-and-hold investor said he would like to get more money to purchase additional Tesla shares. As of Monday's close, Baron's Tesla stake was worth $1.5 billion. The most recent increase in shares occurred in May 2019.

Baron said in February that Tesla had the potential to hit "at least" $1 trillion in revenue in 10 years and continue to grow from there. Shares were at a record high $780 per share at the time.

Baron Capital's portfolio is up 8% to 9% this year, according to the firm. Other major stakes include 7.4 million shares of Charles Schwab; 4.8 million shares of Hyatt Hotels; and 2.3 million shares of index giant MCSI Inc.

Baron said he remains optimistic about the market, saying the company has increased positions in several companies this year. "Whenever we have opportunity, we try to take advantage of them."

— CNBC's Lora Kolodny and Michael Sheetz contributed to this report. Sign-up for a free trial to CNBC Pro and watch the full interview with Ron Baron.