Tesla's Stock Plummets, But Elon Musk’s Other Companies Soar in Secondary Markets: Meet xAI

• Elon Musk’s privately held firms are highly sought after in the private market sector. , having the value of SpaceX , Neuralink, The Boring Company, and xAI have surged by 45% since last year’s presidential election, according to data from the secondary market trading platform Caplight. Nevertheless, as investors in private markets pursue stakes in Musk’s privately held firms, Tesla The shares have decreased in value by about fifty percent.

Although Tesla’s stock price has faced some decline lately, an analyst at JPMorgan suggests this represents a loss of stature. may have no equal In the four months following Donald Trump's electoral victory, the combined valuation of Elon Musk’s privately held firms has surged dramatically.

The total valuation of SpaceX, Neuralink, The Boring Company, and xAI has increased by 45% in private market assessments since last November, as per the data shared with us. https://5.180.24.3/ through a secondary market trading platform Caplight Musk's social media platform X wasn't included in the calculations due to minimal investor engagement in the secondary market.

Shares of privately held companies aren’t traded on stock exchanges; therefore, when early employees or venture capitalists wish to sell their stakes, they must go through a more complicated procedure in the secondary market. Caplight streamlines these off-exchange transactions by collecting information from numerous brokers and connecting institutional investors with them, much like this process works. Zillow connects potential homeowners with real estate agents in the property market.

At the forefront of the surge in Musk's privately held enterprises is his AI firm, xAI, attracting significant interest from investors aiming to benefit from cutting-edge technological developments. According to data from Caplight, the company’s stock value has surged by approximately 110% following the November elections, propelling this young business to an estimated worth of about $96 billion.

It is said that the AI firm might be seeking to raise a fund of $10 billion in a new financing round, which could value the company at around $75 billion. Bloomberg reported Last month, Caplight assessed xAI as having a higher value due to greater interest from institutional investors who were not part of the mentioned financing round.

Shares of SpaceX have surged over 50% since the election, as per Caplight data. Of all Musk’s ventures outside Tesla, The Boring Company fared the worst with an 7.8% decrease in valuation from the previous year's election date.

Unlike the impressive results from his privately held firms, the stock price of Musk’s sole publicly traded entity, Tesla, has dropped by approximately half since reaching its peak of $479.86 back in December. The automobile manufacturer's shares ended trading on Thursday with a decrease of 3%, closing at $240 apiece.

For many years, private firms have delayed their initial public offerings (IPOs), thereby providing greater investment possibilities within the secondary markets. As of 2021, the typical firm going public had reached an age slightly below eleven years, down from approximately seven years back in 1980, data shows. Morningstar , and Caplight CEO Javier Avalos noted that certain technology firms have stayed privately owned for extended periods due to the simpler process of raising capital.

"When discussing businesses that are essentially constructing rockets, inserting brain implants, and developing cutting-edge large language models, it becomes simpler to align these initiatives with your fundamental objectives without having to address quarterly profit reports and respond to analysts' numerous queries," Avalos stated.

Even though private firms don't gain directly from stocks traded in the secondary market as they would during a fundraising round, it has become more frequent for these companies to carry out several tender offer processes each year, allowing shareholders to sell their stakes. According to Avalos, among Elon Musk's ventures, SpaceX frequently conducts such tender offers to maintain satisfaction amongst both its investors and staff members.

This presents an opportunity for shareholders to obtain some liquidity for their shares, addressing a significant requirement they previously had when considering going public," he explained. "They felt compelled to go public due to pressure from venture capitalists and initial staff members who kept insisting, 'I require liquidity.'

The tale was initially showcased on https://5.180.24.3/