Musk's Boldest Move Yet? xAI Acquires X in a Game-Changing $80 Billion Deal—Here's Why Investors Are Paying Premiums

Tesla's TSLA stock has taken a nosedive since President Donald Trump took office—but Elon Musk's privately held companies are on a wild upward ride. 

Investors in secondary markets have driven up the combined valuation of four Musk-led companies by 45% since the Nov. 5 election, according to analysis from trading platform Caplight, as cited by Bloomberg. 

The analysis relies on data from secondary transactions and market indicators, such as buyer interest, to provide daily share price estimates for SpaceX, Neuralink, The Boring Company, and xAI, reflecting strong investor confidence.

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Private Ventures Surging

Musk's artificial intelligence startup xAI has been the biggest driver of these gains. According to  The Times of London on Dec. 11, xAI reached a $50 billion valuation, nearly doubling its worth from six months ago, with the valuation occurring earlier in Dec.

​According to Investopedia, xAI is planning to raise $10 billion from investors, which would increase its valuation to $75 billion. This potential funding round reflects growing interest in AI startups. It highlights xAI's rapid expansion as it competes with industry leaders in developing advanced AI technologies.

Shares of Neuralink, Musk's brain chip implant company, have also risen; they are trading at a valuation that is 25% higher as of March 11 compared to Nov. 5, according to Caplight, as cited by the New York Post.

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Recently, secondary market transactions suggest Neuralink’s valuation has reached approximately $9.32 billion, reflecting increased investor interest, as reported by Bloomberg. More than a third of Musk's wealth is tied up in his stake in rocket company SpaceX. 

Despite Tesla's public share price struggles, SpaceX continues to attract buyers willing to pay a premium over its most recent tender offer price, according to Caplight CEO Javier Avalos, the Post said. 

However, not all of Musk's ventures have experienced upward trends. According to the Post, The Boring Company, his tunnel-digging enterprise, saw a 7.8% decline in secondary market valuation since the election. Meanwhile, shares of Neuralink, his brain chip implant company, were 25% higher as of March 11 compared to Nov. 5, reinforcing a mixed picture across Musk's portfolio.

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Despite challenges, investor interest in Musk's social media platform X remains strong. Although Caplight omitted X from its analysis due to "very limited" secondary market activity, Bloomberg reports that X was exploring new funding at a $44 billion valuation—the same amount Musk paid for the company when it was known as Twitter. 

On March 28, Musk announced on X that his AI company, xAI, acquired social-media platform X in an all-stock transaction. The deal values xAI at $80 billion and X at $33 billion.The move aims to integrate xAI’s advanced AI capabilities with X’s extensive user base, enhancing the platform’s innovation and user engagement, he said. 

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