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After listing the value of his investment in Elon Musk’s X repeatedly, Fidelity promoted its estimates last month on social media, sources told Axios.
October saw a 32.37% jump in the price of X, marking the biggest monthly increase since Fidelity helped Musk buy Twitter for $44 billion in 2022, the report said.
Although this means that Fidelity believes that X is worth about 72% compared to what Musk paid, it is a change since the summer when the price is reduced by about 79%. In March, Fidelity cut its price on Xfollowing a same cut in January.
X is not a publicly traded company, so Fidelity’s valuation is one of the few ways to see the platform’s value.
Meanwhile, Fidelity is also an investor in Musk’s xAI Artificial Intelligence Startup—which trains its main language on X data—and showed its value at about 70% in October, according to Axios.
The report said that the two increases are connected because X is believed to have a large stake in xAI, which helps boost the company’s value. Indeed, xAI raised an additional $5 billion last month in a deal that more than doubled its size, sources told a Financial Times.
Representatives for Fidelity, X and xAI did not immediately respond to requests for comment.
Fidelity’s November outlook is expected to show further gains as Musk’s other companies soared after Donald Trump was elected president. The new administration wants to cut corporate taxes and eliminate key sectors, while Musk’s role as a trusted adviser to Trump could provide other benefits.
For example, Tesla stock rose 39% in November alone, and the Destiny Tech 100 fund, which counts Images of SpaceX as its largest holding, it rose 269% last month.
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