After reducing the value of his investment in Elon Musk X repeatedly, Fidelity raised its valuation last month for the social media platform, sources told Axios.
Xa saw a 32.37% jump in October, marking the biggest monthly gain since Fidelity helped Musk buy Twitter for $44 billion in 2022, the report said.
While that still means Fidelity believes X is worth almost 72% less than what Musk paid, it’s an improvement over the summer when the value is reduced by almost 79%. In March, Fidelity cut its rating to Xfollowing a a similar cut in January.
X is not a public company, so Fidelity’s valuations are one of the few ways to assess the platform’s value.
Meanwhile, Fidelity is also an investor in Musk’s artificial intelligence startup xAI—which trains its large language model on X data—and increased the value of its stake by about 70% in October, according to Axios.
The report says the two increases are likely linked as X is believed to have a large stake in xAI, which is helping boost the sister company’s value. Indeed, xAI raised an additional $5 billion last month in a deal that nearly doubled its value, sources said Financial Times.
Representatives for Fidelity, X and xAI did not immediately respond to requests for comment.
Fidelity’s November valuations are expected to show further gains as Musk’s other companies jumped after Donald Trump was elected president. The new administration wants to cut corporate taxes and deregulate key sectors, while Musk’s role as Trump’s trusted adviser could provide additional perks.
For example, Tesla shares jumped 39% in November alone, and the Destiny Tech 100 fund, which counts SpaceX as its largest holding, it rose 269% last month.
