Customers view a Tesla Model S electric vehicle on display at the company's showroom in Newport Beach, California, U.S., on July 6, 2018.

A long-time Tesla shareholder with a $572 million stake says he's okay with the electric car maker going private.

Ron Baron, the founder of Baron Capital, told CNBC's Becky Quick on Tuesday that there's "no way" he would sell his Tesla shares at Elon Musk's suggested $420 a share price, saying he'd stay on as a private partner. Musk, Tesla's founder and CEO, set the market on fire on Tuesday when he tweeted he was considering a take-private at that price and had lined up financing.

Tesla shares rose more than 11 percent and were also slightly higher in aftermarket trading.

Baron Capital, which has $29.38 billion of assets under management, has 1.6 million shares of Tesla. A $420 per-share price would get him another $100 million on his stake. In the past he has told CNBC Tesla has the potential to make Baron 20 times its money.

He told Quick Tuesday he believes the firm has a bright future. Musk told employees in an email on Tuesday that he thought going private would be a good idea, eliminating the distractions of quarterly earnings and daily stock volatility and the negativity of short sellers betting against the stock.

Musk's only mention of the financing aspect to a take-private, which would need billions of dollars to pull off, was in one tweet on Tuesday. The note to employees didn't mention it and Baron told Quick he hasn't discussed it with the company.

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