Fidelity has raised the value of its holdings in Elon Musk’s X (formerly Twitter) by 32.37% in October, according to a recent report from Axios. Despite this increase, Fidelity still values the social media company at just a fraction of the $44 billion that Musk paid for it in 2022, with the current valuation sitting at 72% below that amount.
This adjustment in valuation is believed to be tied to the performance of xAI, the AI startup founded by Musk. Fidelity participated in a $6 billion Series B funding round for xAI earlier this year and also raised the value of its xAI stake by 70% in October. xAI’s Grok chatbot, which is trained on X data and available to X subscribers, is also seen as a potential driver for the platform’s future growth. There are reports suggesting that X may hold a significant equity stake in xAI, adding further complexity to its valuation.
The valuation update occurred just before Donald Trump’s November presidential election victory, which caused a surge in traffic on X. This influx, however, coincided with a growing shift of users toward rival platforms like Bluesky, signaling ongoing challenges for Musk’s social media venture.
