SUMMARY
Fidelity Investments marked up its stake in Elon Musk’s X Holdings by 32.37% in October 2024, its largest increase since Musk’s $44 billion acquisition in 2022. Despite the boost, X Holdings is still valued nearly 72% below the purchase price. Fidelity, which has consistently adjusted its valuation of X, does not disclose its methods or have direct access to X’s financials. The significant increase may be linked to Musk’s AI venture, xAI, which uses X’s data to train its large language models. Fidelity participated in xAI’s $6 billion Series B funding round and recently marked up its stake in xAI by 70%. Reports suggest X Holdings has an equity stake in xAI, potentially influencing X's valuation. This assessment predates the political implications of Musk’s informal role in President-elect Donald Trump’s administration, which could further impact X’s perceived value in the future.
