Richard Parks Elon Musk’s social media platform, X, has reportedly regained its $44 billion valuation, marking a remarkable recovery after its value had previously plummeted. This turnaround follows Musk’s alignment with former U.S. President Donald Trump and a series of strategic financial decisions aimed at boosting the platform’s worth.
A Dramatic Rebound in Value
Earlier this month, investors valued X at $44 billion during a secondary deal where existing stakes were exchanged, as reported by the Financial Times. This significant recovery comes after Fidelity Investments had valued the platform at just $10 billion in late September.
To further stabilize its finances, X is currently in the process of raising $2 billion in fresh capital to help pay off more than $1 billion in junior debt. The new valuation serves as an important benchmark for this primary funding round.
Musk’s Influence and Ongoing Legal Battles
Since acquiring Twitter in October 2022 and rebranding it as X, Musk has implemented several controversial changes, including relaxing moderation policies. This led to advertiser boycotts and revenue drops. In response, Musk sued major corporations such as Unilever and CVS Health, accusing them of conspiring to harm X’s revenue.
Following these lawsuits, Musk declared: “We tried peace for 2 years, now it is war.”
The Role of xAI and SpaceX
Musk’s AI startup, xAI, has been instrumental in X’s financial recovery. Early last year, Musk provided a 25% stake in xAI to lenders who supported his Twitter acquisition. With xAI now valued at $45 billion, this move has increased investor confidence in X and played a crucial role in its revived valuation.
At the same time, Musk’s broader business empire is undergoing a transformation. His stake in SpaceX, now valued at $147 billion, has surpassed Tesla as his most valuable asset, following a sharp decline in Tesla’s stock.
Despite these financial fluctuations, Musk remains the world’s richest person, with a net worth estimated at $323 billion, according to Forbes.