Elon Musk's X Valuation Takes a Hit as Fidelity Reduces Stake Significantly

Elon Musk's X Valuation Takes a Hit

Elon Musk's social media platform X, formerly Twitter, is now valued at approximately $9.4 billion. This figure represents less than a quarter of its original $44 billion purchase price, according to recent reports from TechCrunch. The markdown comes from Fidelity Investment, the asset manager which assisted Musk in acquiring the social network.

Fidelity has cut the value of its stake in X by 78.7 percent as of August's end, lowering the valuation to around $4.19 million. This comes after Fidelity's previous investment of $19.66 million in X through its Blue Chip Growth Fund.

Investment Markdown History

• This is not the first valuation cut for Musk's venture.
• In July, Fidelity estimated its shares in X at approximately $5.5 million.
• Earlier valuation reductions include a 71.5 percent drop in January.
• Fidelity acquired a stake in X Corp for $300 million immediately after Musk's acquisition.

Implications for Musk’s Other Ventures

In related news, Musk's AI company xAI secured $6 billion to boost its research and development initiatives, boasting a pre-money valuation of $18 billion. With significant backing from Fidelity Management and Research, xAI is positioning itself as a key player in the tech industry.

While Musk's ventures continue to attract considerable investment, the challenges in social media valuation present serious hurdles. Monitoring ongoing financial news and investment reports will be crucial to understanding these market trends. Visit the source for more details.