Elon Musk’s social media platform, X, has reportedly bounced back to the $44 billion valuation he paid for it, marking a strong recovery after a period of financial struggles. This turnaround comes after months of adjustments and strategic moves aimed at improving the platform’s financial health.
A Dramatic Recovery in Valuation
According to a report by the Financial Times, investors valued X at $44 billion during a recent secondary market deal where existing stakeholders exchanged shares. This marks a significant improvement from its $10 billion valuation in September 2023, assessed by Fidelity Investments.
X is also looking to secure $2 billion through a primary funding round to help pay off over $1 billion in junior debt, reflecting the company’s effort to strengthen its financial foundation.
Policy Changes and Legal Battles
Since Musk’s acquisition of Twitter in October 2022, which he later rebranded as X, he has implemented extensive changes, including easing content moderation policies. These policy changes led to boycotts from advertisers, with Musk accusing brands of “blackmail.” As a response, X filed lawsuits against several major companies, including Unilever, Mars, and CVS Health, alleging they conspired to harm the platform’s revenue.
Despite reduced revenue, X managed to post adjusted profits of $1.2 billion in 2024, which has boosted confidence among investors.
The Role of xAI and Musk’s Expanding Empire
Musk’s artificial intelligence company, xAI, played a key role in X’s financial recovery. Early last year, he offered lenders a 25% stake in xAI, which has now achieved a valuation of $45 billion. This move provided additional security to creditors and contributed significantly to X’s improved valuation.
At the same time, Musk’s Tesla stake has decreased in value, with the carmaker’s stock price halving since December amid investor concerns and political controversies. As a result, SpaceX has overtaken Tesla as Musk’s most valuable asset, now worth an estimated $147 billion, according to Forbes.
Despite these fluctuations, Elon Musk remains the world’s richest person, with an estimated net worth of $323 billion.