Elon Musk’s social media platform, X, has recently seen a dramatic recovery. The platform’s value has bounced back to $44 billion. This is a huge change after the company faced many struggles in the past months.
A Big Jump in X’s Value
According to the Financial Times, investors valued X at $44 billion in a secondary deal. In this deal, shareholders exchanged stakes in the company. This is a big jump from September 2023, when X’s worth was only $10 billion, according to Fidelity Investments.
This is a positive sign for Musk, who has worked hard to improve the company. One of the key steps has been X’s attempt to raise new funds. The company is looking to raise $2 billion in a new funding round. This new money will help X pay off over $1 billion in debt.
Musk’s Changes to X
Elon Musk bought Twitter in October 2022 and quickly made many changes. He eased rules on content moderation, allowing more free speech. However, this led to concerns over misinformation and harmful posts.
As a result, many major brands pulled their ads from X. Companies like Unilever, Mars, and CVS Health all stopped advertising. Musk responded strongly, accusing these brands of trying to “blackmail” him. He later filed a lawsuit, claiming the companies worked together to hurt X.
Despite these issues, X has managed to find a way to stay profitable. In 2024, the platform reported adjusted profits of $1.2 billion. This shows that X is becoming financially stable again. Investors, including Andreessen Horowitz, Sequoia Capital, 8VC, and Fidelity Investments, are hopeful for the future.
The Role of xAI in X’s Growth
Musk’s AI startup, xAI, has also played a big part in X’s recovery. Launched to build AI systems that are aligned with human values, xAI has helped boost X’s value.
Last year, Musk gave 25% of xAI to the lenders who helped him buy Twitter. Since then, xAI’s value has grown rapidly. It is now worth $45 billion, which helps Musk’s overall financial position. This has, in turn, helped improve X’s perceived market value.
AI is becoming a major part of many industries, and Musk’s focus on xAI is key to X’s future. With more AI-driven features, X could stand out in the crowded social media market.
SpaceX Overtakes Tesla
While X is recovering, Musk’s business empire is changing. His stake in Tesla is no longer his most valuable asset. The value of Tesla’s stock has dropped by half since December. Falling sales and backlash over Musk’s political views have hurt the company.
Instead, Musk’s stake in SpaceX is now worth more than his Tesla shares. SpaceX, Musk’s private space exploration company, is now valued at $147 billion. This marks a new milestone in Musk’s career. SpaceX is known for its groundbreaking achievements in space exploration, such as reusable rockets.
As a result, Musk’s net worth is now estimated at $323 billion. His SpaceX stake is worth $20 billion more than his Tesla shares. Despite challenges at Tesla and X, Musk remains the richest person in the world.
What’s Next for X?
X is on the path to recovery, but the future remains uncertain. Musk’s leadership has been bold and sometimes controversial, but it has also led to major changes in the social media world. The question is whether X can keep growing and remain successful in the long term.
Musk has said that he wants to turn X into a platform that stands out in the world of social media. With more AI features and new business strategies, he hopes to reshape how people interact online.
Though there are still risks ahead, X’s recovery is a positive sign. The company is stabilizing, and investors are becoming more confident in its future. Musk’s ability to turn companies around is well known. If X can continue to adapt and innovate, it could become a strong player in social media once again.
Even though Tesla faces struggles, Musk’s success with SpaceX and xAI shows that his empire is still growing. His impact on industries like social media, space exploration, and AI will continue to make waves for years to come.