Summary:
Fidelity increased its valuation of X by 32.37% in October.
Valuation still 72% less than Musk's original purchase price of $44 billion.
xAI's valuation rose by 70%, likely benefiting from its connection to X.
xAI raised an additional $5 billion, boosting its valuation significantly.
Positive market trends following Trump's election could lead to further gains for Musk's ventures.
After a series of markdowns, Fidelity has recently increased its valuation of Elon Musk’s X, witnessing a remarkable 32.37% jump in October. This is the largest monthly increase since Fidelity assisted Musk in acquiring Twitter for $44 billion back in 2022.
Despite this uplift, Fidelity still estimates that X is worth nearly 72% less than Musk's purchase price, a significant recovery from a summer markdown of almost 79%. Earlier in the year, Fidelity had already adjusted its valuation for X downwards after a similar cut in January.
Since X is not publicly traded, Fidelity’s estimates serve as one of the few indicators of the platform’s market value. In addition to X, Fidelity has also invested in Musk’s xAI, which is leveraging data from X to train its large language model. Remarkably, the valuation of Fidelity’s stake in xAI surged by around 70% in October, likely due to X's substantial stake in the AI startup. xAI recently raised an additional $5 billion, nearly doubling its valuation.
Fidelity’s projections for November could indicate further gains, especially considering the positive market reactions following Donald Trump's election, which may favor Musk's companies. For instance, Tesla's stock saw a 39% increase in November, while the Destiny Tech 100 fund, with SpaceX as its largest holding, skyrocketed by 269% during the same period.
Image related to Elon Musk's ventures
Fidelity, X, and xAI representatives did not provide immediate comments regarding these developments.
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