Elon Musk’s social media platform, X, has made a stunning recovery, regaining its original $44 billion valuation. This marks a significant turnaround after the platform faced major financial struggles and a backlash from advertisers in 2023.
X’s Remarkable Recovery: From Decline to Revival
After a rocky period, X has been valued at $44 billion in a recent secondary market transaction, according to a report from the Financial Times. This valuation is a sharp contrast to just a year ago when Fidelity Investments pegged the platform’s worth at only $10 billion in September 2023.
To help stabilize its financial situation, X is also raising $2 billion in new funding. This influx of capital is intended to reduce over $1 billion in outstanding debt, with the valuation set in the secondary deal playing a crucial role in determining the price of this new funding round.
Musk’s Leadership: A Bumpy Ride for X
Musk’s leadership of X has been a rollercoaster since he acquired Twitter for $44 billion in October 2022. He made sweeping changes, including rebranding the platform from Twitter to X and relaxing content moderation rules. These moves, however, resulted in many major advertisers pulling out, leading to a significant drop in revenue for the platform.
Musk openly criticized the advertisers, accusing them of “blackmail” in their boycotts. In retaliation, X filed a lawsuit against a coalition of advertisers, including major corporations like Unilever, Mars, and CVS Health, accusing them of deliberately harming the platform’s revenue.
Despite these challenges, Musk’s approach appears to be paying off, as X’s valuation has seen a resurgence.
The xAI Factor: Boosting X’s Recovery
A key driver behind X’s comeback has been Musk’s artificial intelligence (AI) startup, xAI. In early 2023, Musk transferred a 25% stake in xAI to X’s creditors, securing their trust. Since then, xAI has reached a valuation of $45 billion, which has bolstered the financial outlook of X and played a significant role in its recovery.
Even though X’s ad revenue continues to decline, the platform reported $1.2 billion in adjusted profits for the previous year. This demonstrates that X is still financially viable despite facing significant challenges in its advertising business.
Musk’s Wealth Shift: SpaceX Surpasses Tesla
While X’s valuation has rebounded, Musk has seen a major shift in his wealth. For the first time in five years, SpaceX has overtaken Tesla as Musk’s most valuable asset. Tesla’s stock price has dropped by half since December 2024, causing Musk’s stake in the company to decline significantly. In contrast, SpaceX’s valuation has surged, making it the largest component of Musk’s fortune.
According to Forbes, Musk’s net worth remains at $323 billion, with his SpaceX stake now valued at $147 billion—$20 billion more than his holdings in Tesla. This shift in wealth highlights Musk’s expanding influence in the space exploration and AI sectors.
A Complex Future for Musk and X
Despite the turbulence surrounding X, Musk’s ventures in artificial intelligence and space exploration are continuing to drive his financial empire forward. While the platform’s future remains uncertain, Musk’s investments in these industries offer a promising outlook for his overall financial growth.
