Fidelity marked the value of its stock in Elon Musk’s X (formerly Twitter) by 32.37% in October, according to a report by Axios.
Even with these comments, Fidelity still values the company at 72 percent less than the $44 billion Musk is asking for by 2022.
Axios reports that the move is likely connected to xAI — Fidelity invested in Musk’s Series B AI startup earlier this year, and the company also marked down its xAI shares by 70 percent in October. XAI’s chatbot Grok was trained on X data and is available to X subscribers; UX may also have a significant share of equity in xAI.
The reported marketing came before Donald Trump’s presidential election victory in November, when Trump promised that Musk would lead the new Department of Public Works. The election has caused a spike in traffic on X, which also appears to be driving millions of users to competing services like Bluesky.
