Elon Musk’s acquisition of X for $44 billion in 2022 was partly financed by loans from banks like Morgan Stanley, with a significant portion of the debt being retained due to investor apprehension about X’s business outlook.
Mr. Musk’s influence in President Trump’s administration has helped sway investor sentiment.
Recently, banks sold about $4.7 billion of X’s debt, surpassing their initial intention of $3 billion. Mr. Musk’s involvement in government initiatives has raised questions about potential conflicts of interest.
X has benefitted from becoming a key source of information on the administration’s activities, attracting advertisers back to the platform and boosting revenue.
While X and Morgan Stanley declined to comment, reports have highlighted a significant increase in revenue and successful debt sales following Mr. Musk’s involvement in the company.
The successful sale of X’s debt has relieved Mr. Musk and the banks from a burdensome financial obligation, with recent investor interest driving up debt sales.
X’s improving revenue and partnerships with major tech companies like Amazon and Apple have attracted investors back to the company.
The company’s financial outlook has significantly improved, and recent revenue growth and cost-cutting measures have bolstered investor confidence.
Internal communications at X suggest a positive outlook on future business prospects and revenue growth, with the company making strides in advertising revenue.
The company’s cost-cutting measures and strategic decisions have resonated well with investors, contributing to its financial and political resurgence.
Investors’ shift in confidence towards Mr. Musk’s companies is driven by his influential role in the government, indicating a brighter future for his ventures and a higher likelihood of debt repayment.
Positive developments at X have attracted advertisers back to the platform, while concerns remain about potential repercussions for not supporting the company.
Mr. Musk’s legal actions against advertisers and advocacy groups have had ripple effects in the industry, with his ties to the White House influencing business decisions at other companies.
Mr. Musk’s association with the White House could have implications for his other businesses, showcasing the interconnected nature of politics and the tech industry.
Ryan Mac and Sheera Frenkel contributed to this report.