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Elon Musk’s X in talks to raise funds at $44 billion valuation: report

Credit: Linda Yaccarino/X

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It appears that Elon Musk’s alleged “worst investment” is about to break even. As per a recent report, X is reportedly in talks to raise funds from investors at a $44 billion valuation.

Elon Musk paid $44 billion to acquire X, then called Twitter, in 2022. At the time, it was widely alleged that Musk had overpaid for the platform, and that he would likely never get his investment back.

The fundraising round:

  • Citing people reportedly familiar with the matter, Bloomberg News has reported that talks of the funding round for X are still ongoing and that details could still change.
  • If the funding round does push through, it would be the first investment round for X since Musk acquired the company in 2022.
  • A valuation of $44 billion implies a rather impressive turn for X, considering that the company saw notable valuation cuts following Musk’s Twitter takeover.
  • In December alone, Fidelity Investments marked down its Twitter stake by about 70% from the company’s $44 billion sale price. 
  • Fidelity’s estimate from December, however, was released prior to the current deal talks, Bloomberg noted.
  • Recent reports have noted that Morgan Stanley is putting the final touches on the sale of $3 billion worth of X debt at no discount to face value due to high demand from investors.
  • X, for its part, has not issued a comment about the matter.

The xAI difference:

  • A key difference maker in X’s recent valuation round seems to be the social media platform’s stake in Elon Musk’s artificial intelligence startup, xAI.
  • As per Bloomberg, X has a stake of about $6 billion in xAI.
  • xAI is reportedly canvassing potential investors for a funding round that would value the company at about $75 billion.
  • xAI is one of the fastest-rising companies in the artificial intelligence sphere, with the company recently launching the latest version of its flagship large language model (LLM), Grok-3.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Elon Musk may rethink his charity pledge after Peter Thiel’s Bill Gates warning: report

Musk reportedly took Thiel’s suggestion seriously.

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Credit: Tesla

Reports have emerged suggesting that Elon Musk might be rethinking his promise to give away most of his fortune. This was reportedly due to his longtime friend Peter Thiel, who told the world’s richest man to withdraw from the Giving Pledge because his wealth could end up “in left-wing nonprofits chosen by Bill Gates.”

Thiel shared the story during a private lecture series in San Francisco in September. As noted in a Reuters report, Musk reportedly took Thiel’s suggestion seriously.

Thiel warned Musk about his fortune going to Gates-backed causes

Thiel said he even ran the math to make his point. By checking actuarial tables, he calculated that if Musk died within a year, his pledge would effectively direct $1.4 billion to Bill Gates. Musk reportedly said, “What am I supposed to do, give it to my children? You know, it would be much worse to give it to Bill Gates.”

Musk signed on to the Giving Pledge in 2012, two years after it was co-founded by Gates and Warren Buffett, as noted in a Daily Beast report. The initiative asks billionaires to donate the majority of their wealth to charitable causes either during their lifetime or through their wills. Gates’ foundation has focused on global health, education, and gender equality, areas Thiel has described as “left-leaning.”

Spokespeople for Thiel, Musk, and Gates have not issued a comment about the matter.

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Elon Musk and Bill Gates

Thiel, who co-founded PayPal with Musk in 2000 before launching Palantir and becoming Facebook’s first outside investor, has maintained close ties to the Tesla and SpaceX CEO over the years. Musk, for his part, continues to donate through the Musk Foundation, which funds education, clean energy, and scientific research.

Elon Musk and Bill Gates’ relationship has taken a nosedive in recent years, especially amidst news that the Microsoft co-founder had taken a short bet against Tesla. Musk seemed to have taken Gates’ Tesla short personally, considering that the EV maker is fighting for sustainability, a cause that the Microsoft co-founder has supported. 

Gates has also been skeptical of Tesla’s projects such as the Tesla Semi, which Gates noted was not feasible due to the limitations of battery technology. More recently, the two billionaires butted heads when Gates claimed that the cuts initiated by Musk’s DOGE initiative would cost 2 million lives. In a post on X, Musk responded by stating that “Gates is a huge liar.”

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‘I don’t understand TSLAQ:’ notable investor backs Tesla, Elon Musk

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tesla showroom
(Credit: Tesla)

One notable investor that many people will recognize said today on X that he does not understand Tesla shorts, otherwise known as $TSLAQ, and he’s giving some interesting reasons.

Martin Shkreli was long known as “Pharmabro.” For years, he was known as the guy who bought the rights to a drug called Daraprim, hiked the prices, and spent a few years in Federal prison for securities fraud and conspiracy.

Shkreli is now an investor who co-founded several hedge funds, including Elea Capital, MSMB Capital Management, and MSMB Healthcare. He is also known for his frank, blunt, and straightforward responses on X.

His LinkedIn currently shows he is the Co-Founder of DL Software Inc.

One of his most recent posts on X criticized those who choose to short Tesla stock, stating he does not understand their perspective. He gave a list of reasons, which I’ll link here, as they’re not necessarily PG. I’ll list a few:

  • Fundamentals always have and will always matter
  • TSLAQ was beaten by Tesla because it’s “a great company with great management,” and they made a mistake “by betting against Elon.”
  • When Shkreli shorts stocks, he is “shorting FRAUDS and pipe dreams”

After Shkreli continued to question the idea behind shorting Tesla, he continued as he pondered the mentality behind those who choose to bet against the stock:

“I don’t understand ‘TSLAQ.’ Guy is the richest man in the world. He won. It’s over. He’s more successful with his 2nd, 3rd, and 4th largest companies than you will ever be, x100.

You can admit you are wrong, it’s just a feeling which will dissipate with time, trust me.”

According to reports from both Fortune and Business Insider, Tesla short sellers have lost a cumulative $64.5 billion since Tesla’s IPO in 2010.

Elon Musk issues dire warning to Tesla (TSLA) shorts

Shorts did accumulate a temporary profit of $16.2 billion earlier this year.

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Tesla owners show off improvements with new Full Self-Driving v14 rollout

Some of the big things that Tesla faced head-on with the development and release of v14 were navigating in parking garages and handling parking after arriving at a destination.

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Credit: Tesla Europe & Middle East/X

Tesla owners with access to the company’s Full Self-Driving new version, v14, which rolled out on Tuesday morning, are showcasing some of the very impressive improvements that have arrived.

CEO Elon Musk called v14 “sentient” a few weeks ahead of its rollout, claiming the newest iteration of the company’s Full Self-Driving platform would be the most accurate to date.

Tesla FSD (Supervised) V14.1 with Robotaxi-style dropoffs is here

It was obvious this narrative had Tesla owners keeping their expectations high, as there were very evidently things that needed to be improved upon that were present in v13. I wrote about several improvements I was hoping to see, and based on the release notes for v14, Tesla did have these things in the works already.

Some of the big things that Tesla faced head-on with the development and release of v14 were navigating in parking garages and handling parking after arriving at a destination.

Tesla said it was working to increase the capabilities of Summon within parking garages, as many owners believe that is where it would be the most beneficial.

While that does not appear to be part of this initial v14 rollout, it does seem Tesla is focused on improving the suite’s ability to navigate through these garages, including stopping for a ticket to enter the facility, finding a spot, and parking in an appropriate space.

It was evident this was a huge improvement based on one example from an owner who received v14:

If you look closely, you will even see the car shift slightly to the right when it arrives at the ticketing station, making it easier for the driver to hand over their ticket and payment. It then moves back out to the right when leaving to return to the center of the lane. It’s very intuitive.

Additionally, it appears to be more accurate when parking, thanks to improvements that enable owners to select the type of parking upon arrival at a destination.

In the v14.1 release notes, Tesla said that it has added “Arrival Options for you to select where FSD should park: in a Parking Lot, on the Street, in a Driveway, in a Parking Garage, or at the Curbside.”

One owner chose to navigate home and chose a garage to park in. Full Self-Driving performed it without any issues:

These are just two evident improvements so far, and there are likely many more on the way. The changes and fixes will be tracked by anyone with access to FSD v14 in the coming weeks.

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