After repeatedly marking down the value of Elon Musk’s investment in X, Fidelity last month raised its estimate for the social media platform, sources told Axios.
X’s valuation rose 32.37% in October, the biggest monthly increase since Fidelity helped Musk buy Twitter for $44 billion in 2022, the report said.
That still means Fidelity believes it’s worth almost 72% less than what Musk paid, an improvement over the summer. the value was reduced by almost 79%. in march Fidelity cut its rating on Xfollowing a similar cut in January.
X is not a publicly traded company, so Fidelity’s calculations are one of the few ways to measure the platform’s value.
Meanwhile, Fidelity is also an investor in Musk’s artificial intelligence startup xAI — which is training its big language model on X data — and marked the value of its stake at around 70% in October, according to Axios.
The report said the two increases are likely linked, as X is believed to have a large stake in xAI, helping to boost the value of its sister company. In fact, xAI raised an additional $5 billion last month in a deal that nearly doubled its valuation, sources have told him Financial Times.
Representatives for Fidelity, X and xAI did not immediately respond to requests for comment.
Fidelity’s November valuation estimates are expected to show more gains, as other Musk companies have soared following the election of Donald Trump as president. The new administration wants to cut corporate taxes and deregulate key sectors, while Musk’s role as a trusted adviser to Trump could provide additional benefits.
For example, Tesla shares rose 39% in November alone, and the Destiny Tech 100 fund, which counts SpaceX as its largest holding, rose 269% last month.
