Elon Musk’s X Is Trying to Raise Billions—But Can It Justify the Price Tag?

​Elon Musk is at it again. The billionaire is reportedly trying to raise fresh funding for X (formerly Twitter) at the same $44 billion valuation he reluctantly paid when he bought the platform in 2022. Sounds ambitious? That’s because it is.

Here’s why this move is turning heads—and why investors might need some serious convincing.

A Wild Turnaround for X
Just last year, Fidelity slashed X’s valuation by a staggering 70%, suggesting the social media giant was worth far less than what Musk shelled out. But now, Musk wants new investors to buy in at full price—the same price that Wall Street and even he himself once thought was too high.

And yet, there are signs that the tide might be turning.

Earlier this month, big banks successfully offloaded $5.5 billion of debt tied to X at 97 cents on the dollar. That’s better than expected, signaling that some investors are warming up to the idea that X might have a future beyond chaos and controversy.

The Numbers: A Mixed Bag
X’s revenue has taken a nosedive, plunging from $5 billion in 2021 to $2.7 billion last year. That’s not exactly the kind of growth story investors love to hear.

But here’s the plot twist: despite the revenue drop, X’s profitability has nearly doubled, at least by one key metric—adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Musk’s cost-cutting spree (including layoffs and a paid verification push) seems to be making a dent.

Then there’s xAI, Musk’s artificial intelligence startup, which could give X a boost. The social platform owns a 10% stake in xAI, which just unveiled the Grok 3 large language model—an AI-powered chatbot designed to rival OpenAI’s ChatGPT.

The Competition: Can X Keep Up?
Meanwhile, Meta (Facebook and Instagram’s parent company) is soaring, with its stock up 22% this year. On the flip side, Trump Media & Technology Group (which owns Truth Social) has taken a 14% hit.

The question for investors: Is X the next Meta, or just another struggling social platform?

The Bottom Line
Musk’s latest fundraising effort is a bold move—one that suggests he believes X is worth just as much today as it was before the drama, lawsuits, and ad revenue declines. Whether investors will buy into that vision remains to be seen.

If there’s one thing we know for sure, it’s that Musk never plays it safe—and this bet on X could be one of his riskiest yet.







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