{"id":300210,"date":"2025-04-09T13:26:00","date_gmt":"2025-04-09T20:26:00","guid":{"rendered":"https:\/\/sftarticles.wpenginepowered.com\/en\/?p=300210"},"modified":"2025-07-01T14:55:30","modified_gmt":"2025-07-01T21:55:30","slug":"elon-musks-twitter-acquisition-faces-scrutiny-amid-65-valuation-drop","status":"publish","type":"post","link":"https:\/\/cms-articles.softonic.io\/en\/elon-musks-twitter-acquisition-faces-scrutiny-amid-65-valuation-drop\/","title":{"rendered":"Elon Musk&#8217;s Twitter Acquisition Faces Scrutiny Amid 65% Valuation Drop"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Elon Musk&#8217;s acquisition of Twitter, now rebranded as X, for $44 billion has come under intense scrutiny,<strong> particularly as Fidelity Investments revalued its stake to reflect a staggering 65% loss within a year.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Musk, aware he was overpaying, initially attempted to back out of the deal but ultimately financed the acquisition through a combination of personal funds and mounting debt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.softonic.com\/articulos\/elon-musk-ha-montado-una-compania-de-inteligencia-artificial-solo-con-hombres-xai\" target=\"_blank\" rel=\"noopener\" title=\"In 2023, Musk launched xAI\">In 2023, Musk launched xAI<\/a>, a private venture aimed at developing artificial intelligence products.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Tesla&#39;s stock is crashing, and the world&#39;s richest billionaire oligarch, Elon Musk, is getting desperate, telling employees not to sell.<br><br>So the US president is threatening to imprison US citizens in El Salvador to try to save Musk&#39;s wealth.<br><br>Trump claims vandalism is &quot;terrorism&quot; <a href=\"https:\/\/t.co\/PRVukYT7g6\">pic.twitter.com\/PRVukYT7g6<\/a><\/p>&mdash; Ben Norton (@BenjaminNorton) <a href=\"https:\/\/twitter.com\/BenjaminNorton\/status\/1903250681114530226?ref_src=twsrc%5Etfw\">March 22, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Tesla Investors Sue Musk Over Alleged Breach of Duty Linked to xAI Venture<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This development has raised eyebrows among Tesla investors, who have filed lawsuits against Musk for alleged breaches of fiduciary duty. Critics suggest that his control over xAI could serve as a backup plan to salvage the faltering Twitter investment, a concern further complicated by Musk\u2019s proposal for Tesla to potentially invest in xAI.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Despite raising $12 billion for xAI with a $40 billion valuation<\/strong>, Musk prematurely declared the company&#8217;s worth at $125 billion following the Twitter acquisition, a figure widely regarded as inflated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This raises ethical questions about potential self-dealing, especially given that Tesla&#8217;s stock has suffered amid declining deliveries and profitability.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Has Elon Musk ruined Tesla? | If You&#039;re Listening\" width=\"840\" height=\"473\" src=\"https:\/\/www.youtube.com\/embed\/A7pvLm54sfI?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Looking ahead, <strong>Musk\u2019s vision appears to hinge on integrating xAI\u2019s technology, notably its large language model Grok, into Tesla\u2019s electric vehicles<\/strong>. He has previously suggested a $5 billion investment from Tesla into xAI, though this would require shareholder approval.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/en.softonic.com\/articles\/teslas-stock-keeps-falling-and-shareholders-are-very-worried-is-it-time-for-musk-to-leave-the-company\" target=\"_blank\" rel=\"noopener\" title=\"With Tesla's stock price fluctuating against a backdrop of declining revenues and broader market instability,\">With Tesla&#8217;s stock price fluctuating against a backdrop of declining revenues and broader market instability,<\/a> stockholder consent for such an investment might hinge on Musk&#8217;s assurance that xAI will translate into tangible benefits for Tesla.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As these developments unfold, many are questioning whether the interests of Tesla shareholders are being adequately protected amidst Musk\u2019s ambitious schemes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Elon Musk&#8217;s acquisition of Twitter, now rebranded as X, for $44 billion has come under intense scrutiny, particularly as Fidelity Investments revalued its stake to reflect a staggering 65% loss within a year. Musk, aware he was overpaying, initially attempted to back out of the deal but ultimately financed the acquisition through a combination of &hellip; <a href=\"https:\/\/cms-articles.softonic.io\/en\/elon-musks-twitter-acquisition-faces-scrutiny-amid-65-valuation-drop\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Elon Musk&#8217;s Twitter Acquisition Faces Scrutiny Amid 65% Valuation Drop&#8221;<\/span><\/a><\/p>\n","protected":false},"author":9317,"featured_media":291832,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","wpcf-pageviews":0},"categories":[1015],"tags":[8319,1471],"usertag":[],"vertical":[],"content-category":[6849],"class_list":["post-300210","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-ev","tag-tesla","content-category-lifestyle"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/posts\/300210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/users\/9317"}],"replies":[{"embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/comments?post=300210"}],"version-history":[{"count":1,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/posts\/300210\/revisions"}],"predecessor-version":[{"id":307995,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/posts\/300210\/revisions\/307995"}],"wp:attachment":[{"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/media?parent=300210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/categories?post=300210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/tags?post=300210"},{"taxonomy":"usertag","embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/usertag?post=300210"},{"taxonomy":"vertical","embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/vertical?post=300210"},{"taxonomy":"content-category","embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/content-category?post=300210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}