Elon Musk's X Could Be On The Verge Of A Record Valuation Recovery: All You Need To Know

The potential valuation boost comes after a tumultuous period for X, during which it faced an exodus of advertisers due to concerns over hate speech and misinformation.

Musk’s artificial intelligence venture, xAI, has also been making headlines.

Source : X/@ElonMuskOde

Elon Musk’s social media platform, X (formerly Twitter), is reportedly in discussions to secure new financing that could restore its valuation to the $44 billion price tag Musk originally paid when he acquired the company, formerly known as Twitter, in 2022. As reported by Bloomberg News, sources familiar with the matter indicate that the talks are ongoing, and details remain fluid. If the deal materialises, it would mark the first publicly known round of investment since Musk took control of the platform.

The potential valuation boost comes after a tumultuous period for X, during which it faced an exodus of advertisers due to concerns over hate speech and misinformation, exacerbated by Musk’s polarising public statements. Fidelity Investments, one of the major backers of Musk’s acquisition, had significantly written down X’s value, estimating a nearly 72 per cent decline as of late October 2023.

Post-Trump Changes

However, recent developments have shifted the company’s trajectory. The political landscape changed dramatically with Donald Trump’s victory in the 2024 presidential election, which granted Musk a level of influence within the federal government. Additionally, Musk’s ventures have been performing strongly — Tesla’s stock has surged since Election Day, and SpaceX was valued at $350 billion as of December, making it the world’s most valuable tech startup.

Musk’s artificial intelligence venture, xAI, has also been making headlines. The company recently secured $6 billion in funding at a $50 billion valuation and is reportedly considering another round that could push its valuation to $75 billion. Notably, X holds an approximately $6 billion stake in xAI, a factor that could contribute to its financial resurgence.

Grok 3 Announcement

On Monday, xAI introduced its latest artificial intelligence model, Grok 3, which it claims surpasses competing systems from Google, OpenAI, Anthropic, and DeepSeek. In response, X integrated Grok into its subscription plans, increasing the price of its top-tier Premium+ service to nearly $50 per month.

Despite these advances, X is still working to recover its advertising revenue, which reportedly dropped by up to 28 per cent in 2024 compared to the previous year. However, the company has seen major advertisers, including Apple, return to the platform. X CEO Linda Yaccarino stated in January that “90 per cent of advertisers who boycotted the platform are back on X.”

Challenges remain for Musk and his social media venture. In January, just before the Trump administration took office, the US Securities and Exchange Commission (SEC) filed fresh charges against Musk, alleging he underpaid Twitter investors by at least $150 million during his acquisition of the platform. As the situation unfolds, it remains to be seen whether X can fully regain its former financial standing and rebuild its position in the digital media landscape.