Fidelity increases the valuation of Elon Musk’s X by 32%, according to filings

On By Littum

ONEaccording to the latest filings, Fidelity Investments has raised its valuation of Elon Musk’s social media platform, X (formerly Twitter), by 32.4% in October 2024.

This is the biggest increase since Musk’s acquisition of the platform in 2022 for $44 billion, as detailed in the filings.

Despite the significant 32% increase, the updated valuation is still nearly 72% lower than the original purchase price, reflecting the ongoing challenges the platform faces in fully recovering its previous value.

However, the increase in valuation signals renewed investor optimism about X’s future prospects.

The latest filings indicate that the positive adjustment comes amid Musk’s efforts to rebrand and reshape X’s monetization strategy, including pushing for greater subscription revenue and increased user engagement.

In addition, the platform has made progress in integrating advanced technologies such as artificial intelligence, an area Musk has aggressively pursued through his AI company, xAI.

Fidelity’s updated valuation of X highlights a shift in sentiment towards the platform, signaling that despite the headwinds, there are promising indicators of growth and innovation. Musk’s ventures into both social media and artificial intelligence have been central to his broader strategy of expanding technological possibilities.

The rise in X’s valuation also aligns with the progress of xAI, which raised $6 billion in Series C funding. Major investors such as Sequoia Capital, Morgan Stanley and BlackRock have backed the AI ​​startup, which has further strengthened Musk’s technology portfolio.

xAI is focused on developing advanced AI models, including Grok 3, which aim to compete in the rapidly growing AI landscape.

These latest filings illustrate Fidelity’s growing confidence in Musk’s ability to turn around both X and his other ventures, despite the initial hurdles he faced following his acquisition of Twitter.

While critics have questioned the initial price paid for Twitter, Musk’s aggressive innovation strategy may ultimately bring the platform closer to its original valuation, offering hope for future growth.

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