Elon Musk Seeks Investors for X at $44 Billion Valuation Despite Financial Challenges
Staff Editor Elon Musk Seeks Investors for X Amid Financial Struggles
In a surprising turn of events, Elon Musk is reportedly seeking new investors for X, formerly known as Twitter, at its original $44 billion valuation. This move comes just over a year after Musk’s tumultuous acquisition of the social media platform.
Musk’s journey with Twitter began in 2022 with an initial bid of nearly $44 billion. Despite attempts to back out of the deal, legal pressures ultimately led to the completion of the purchase. Since then, X has faced significant financial challenges, losing an estimated 79% of its original value.
The platform has struggled to maintain its advertiser base and has seen an influx of controversial groups, contributing to substantial financial losses and debt accumulation. These difficulties have prompted Musk to embark on a fundraising mission, aiming to secure investments at the original purchase valuation.
However, Musk’s valuation stands in stark contrast to Fidelity’s recent estimate of $9.4 billion for X. The purpose of this fundraising effort is reportedly twofold: to address debt repayment and to fund the development of Musk’s vision for an “Everything App.”
Musk’s personal finances have also taken a hit, with his net worth declining by nearly $90 billion in 2025, partly due to a slump in Tesla sales. This financial pressure extends to X’s debt management, with banks offloading the company’s debt to creditors.
Despite these challenges, Musk’s political connections and involvement in AI projects continue to influence Wall Street’s approach to X’s financial situation. Operationally, X faces stagnant user growth and unimpressive revenue figures, prompting Musk to address financial struggles in internal communications.
As uncertainty looms over X’s future and investor confidence, this fundraising effort is seen as a critical juncture in Musk’s broader business strategy. The outcome of this initiative may have far-reaching implications for both X and Musk’s expansive business empire.
