Elon Musk’s X raises almost $1 billion in new equity funding
Elon Musk’s social network X has raised close to $1 billion in new equity from investors, according to people with knowledge of the matter—a deal that gives the company a valuation in line with when Musk took it private in 2022.
The deal values X’s equity at roughly $32 billion. The Twitter buyout included at least $12.5 billion in debt, meaning the latest fundraising was completed at roughly the same $44 billion enterprise value as Musk’s initial purchase.
Musk regularly turns to the private markets for backing for several of his companies, including SpaceX, which completed a tender offer valuing the startup at about $350 billion, and xAI, which is said to have canvassed investors about raising fresh funding at a valuation of $75 billion.
At the same time that Musk’s companies have gained in the private markets, shares of his automaker Tesla Inc. have tumbled by more than 40% so far this year, in part because his political prominence has soured some consumers on his cars. Heightened competition is also weighing on the stock. On Tuesday, Tesla sank 5.3% following news that Chinese automaker BYD Co. had unveiled an electric car that could be charged as quickly as a gas vehicle is refueled.
Source: Fortune