Investors reconsider X’s US$44b valuation as Musk rides Trump boost
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The news: Elon Musk’s X is reportedly in talks to raise money from investors at a USD44 billion ($69.3 billion) valuation, the same price he paid for the company, formerly Twitter, in 2022.
Unnamed sources told Bloomberg and Reuters that talks are ongoing, and that the details could change.
The context: It would be the first known investment round for X since Musk took it private, and would represent a remarkable turnaround of fortunes.
Bloomberg reported that as of December, Fidelity Investments had marked down its stake in X by about 70% from the price Musk paid in 2022.
X has not commented on the reports.
The discussions come as valuations of Musk’s other companies have also climbed since Donald Trump’s election.
Tesla shares have surged more than 40%, and SpaceX’s December valuation at USD350 billion made it the world’s largest tech startup, Bloomberg noted.
Musk’s artificial intelligence startup, xAI, is also reportedly seeking to raise financing, with a potential valuation of about USD75 billion.
Other parts of X capital structure have also seen positive revaluations. Morgan Stanley was recently finalising the sale of USD3 billion of X debt at face value, after previous efforts to offload the debt faced hesitation from buyers.
Some investors believe Musk’s close ties with Trump and the return of advertisers have lifted expectations for X’s financial performance.
