Fidelity again cuts valuation of Elon Musk's X, 79% down since his purchase

Fidelity had previously invested $19.66 million in X through this fund, but this isn't the first valuation cut.

Elon Musk's social media platform X, formerly Twitter, is now valued at approximately $9.4 billion, less than a quarter of its original $44 billion purchase price, TechCrunch has reported.

The markdown comes from Fidelity, the asset manager which helped Musk acquire the social network.

Fidelity has reduced the value of its stake in X by 78.7 percent as of the end of August, bringing its valuation down to around $4.19 million, the report said, citing disclosures from the Fidelity Blue Chip Growth Fund.

Fidelity previously invested $19.66 million in X through this fund. This isn't the first valuation cut. At the end of July, Fidelity estimated its shares in X at about $5.5 million.

The latest markdown follows a history of substantial reductions, including a 71.5 percent cut in January and a 65 percent  reduction earlier this year.

Fidelity took a stake in X Corp for $300 million in October 2022, shortly after Musk's acquisition. The firm did not immediately respond to TechCrunch's requests for comment. Moneycontrol could not independently verify the report.

Musk's AI company, xAI, recently raised $6 billion to enhance its research and development efforts. The tech billionaire indicated that the pre-money valuation for xAI was $18 billion, and the company has attracted key investors, including Fidelity Management and Research.