After repeatedly downgrading its investment in Elon Musk’s X, Fidelity last month boosted its estimates for the social media platform. The sources told Axios.
October saw a 32.37% jump in X’s valuation, representing the largest monthly increase since Fidelity helped Musk buy Twitter for $44 billion in 2022, the report said.
While this still means Fidelity believes the value of In March, Fidelity cut its rating on X stock, after a similar cut in January.
X is not a publicly traded company, so Fidelity’s estimates are one of the few ways to measure a platform’s value.
Meanwhile, Fidelity is also an investor in Musk’s AI startup xAI, which trains its big language model on X data, and raised the value of its stake by about 70% in October, according to Axios.
The two increases are likely linked as X is believed to own a significant stake in xAI, which helps boost the value of the sister company, the report said. In fact, xAI raised an additional $5 billion last month in a deal that nearly doubled its value. Sources told… 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 further gains as Musk’s other companies rise after Donald Trump is elected president. The new administration wants to cut corporate taxes and liberalize key sectors, while Musk’s role as Trump’s trusted advisor could provide further 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.
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