Elon Musk's X Valuation Plummets as Fidelity Investment Cuts Stake Significantly
Elon Musk's social media platform X, formerly Twitter, is now valued at approximately $9.4 billion, significantly lower than its original $44 billion purchase price. The markdown is part of Fidelity's recent valuation cut, which has seen its stake in X reduced by 78.7% as of the end of August, bringing its valuation down to around $4.19 million, according to reports.
Fidelity previously invested $19.66 million in X through the Fidelity Blue Chip Growth Fund. Notably, this isn't the first evaluation adjustment; at the end of July, the estimated shares were around $5.5 million after a significant reduction of 71.5% in January.
The firm took a stake in X Corp for $300 million in October 2022, shortly after Musk's acquisition. Meanwhile, Musk's AI company, xAI, has recently raised $6 billion, indicating a pre-money valuation of $18 billion. This trajectory illustrates the steep challenges in social media valuation and performance.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.