Elon Musk’s $44B X Now Valued at a Fraction of Its Cost

Elon Musk’s grand $44 billion gamble on Twitter has taken a brutal hit. Fidelity, one of the key financial backers in Musk’s acquisition of the platform—now rebranded as X—has slashed its valuation of the social media giant to just $9.4 billion. That’s a staggering 79% markdown from its original price tag.

Fidelity’s Blue Chip Growth Fund, which poured $19.66 million into Musk’s vision of a free-speech utopia, now values its investment at a mere $4.18 million. The once-vaunted purchase has spiraled into a financial sinkhole, as reflected in the latest disclosure from the asset manager.

The valuation drop underscores just how turbulent the ride has been since Musk took over. His leadership overhaul, including mass layoffs and the controversial subscription push for “X Premium,” has left many questioning the platform’s long-term viability. Add to that the ongoing exodus of advertisers and a growing user dissatisfaction, and it’s no wonder the market is expressing doubts.

The markdown raises an uncomfortable question for Musk: Was the $44 billion price tag ever justifiable? Twitter, now X, has struggled to stabilize, let alone grow, under the weight of its new identity. Musk’s pivot to a “super app” concept, inspired by China’s WeChat, remains unclear in execution, and so far, users seem more confused than enthusiastic.

It’s a fall from grace for a platform that once held an outsized influence on media, culture, and politics. What remains to be seen is whether Musk’s tech optimism and relentless pursuit of innovation can somehow turn this sinking ship around—or if X is destined to become a cautionary tale about overpaying for influence in the social media space.

For now, X is valued closer to a startup struggling to find its way, rather than the juggernaut Musk promised. And Fidelity’s markdown is just the latest sign of the platform’s uncertain future.