Billionaire investor Elon Musk’s social media platform X is reportedly seeking new funding from investors while sticking to a $44 billion valuation, Bloomberg reports. Reports further stated that discussions for the new funding round are still underway, and details may evolve. The reported valuation aligns with the amount Musk paid for Twitter in 2022, suggesting a potential rebound for the platform following its financial struggles.
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In separate news, X has doubled its Premium+ pricing to $50/month after Musk’s AI startup, xAI, released its updated Grok-3 model yesterday. The annual plan now costs $350, up from $22/month previously. Earlier, Musk also stated that xAI will be integrated into X while remaining available as a standalone app.
Investor Sentiment on X Rebounds
Since Musk rebranded Twitter as X, its valuation dropped due to advertiser exits and layoffs. However, investor interest is picking up as user activity increases. Musk’s efforts to revamp the platform and evolving political dynamics contributed to this turnaround.
Recently, in a strong vote of confidence for X, banks led by Morgan Stanley (MS) have sold a significant portion of $13 billion in debt from Musk’s takeover of Twitter. The sale saw overwhelming success, drawing strong investor interest with orders exceeding $12 billion. With just over $1 billion in loans remaining, the company gains some financial relief.
Interestingly, Tesla (TSLA) is Musk’s only publicly traded company, while ventures like SpaceX and X remain private. Developments in Musk’s businesses often affect Tesla’s stock. So far this year, TSLA has dropped 12%, impacted by Musk’s political moves and weak sales in Europe.
Which is the Best Social Media Stock?
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