Elon Musk's xAI Acquires X for $33 Billion: What It Means for Investors
In a bold move that has sent ripples through the tech and social media industries, Elon Musks company, xAI, has officially acquired X, the social media platform formerly known as Twitter, for an astounding $33 billion. This acquisition marks a significant leap in Musks expanding portfolio, which already includes several high-profile ventures. In 2025, Musk plans to launch X Money, a fintech platform designed to revolutionize digital transactions, alongside X TV, a streaming media service aimed at competing with established giants in the entertainment industry. According to CEO Linda Yaccarino, the visionary goal is to transform X into an 'all-encompassing everything app,' a platform that integrates various functionalities and services under one roof, as reported by Business Today.
This acquisition raises critical questions for potential investors. Should one consider investing in these emerging ventures? GOBankingRates sought insights from financial experts who examined current market trends, potential returns versus risks, and the historical performance of Musks publicly traded companies to provide clarity on this decision.
Musks Track Record
Experts in the financial domain express caution regarding investments linked to Musks businesses. Michael Collins, CEO and founder of WinCap Financial, strongly advises against investing in Musks new ventures at this time, especially as the market faces significant challenges. He points out that Musk is currently balancing multiple high-pressure roles, including overseeing the Department of Government Efficiency (DOGE) while simultaneously managing Tesla. This juggling act raises concerns about Musks capacity to effectively handle the workload, especially in light of recent company performance.
'Tesla sales have tanked 13% in the first three months of the year, which highlights the largest drop in deliveries in the companys history,' Collins remarked. 'Coupled with Tesla stock plummeting by 35% over the last three months, this paints a bearish outlook not just for Tesla, but for Musks ventures as a whole.'
Brandon Hardiman, an investor and owner of Yellowhammer Home Buyers, echoed Collins cautious stance. He noted that while Musks ventures aim to disrupt various industriesranging from fintech to artificial intelligence and streaming mediathe risks associated with investing under the Musk brand are substantial. 'While the potential for innovation in these fields is enormous,' Hardiman stated, 'the volatility that often accompanies Musks business decisions introduces a layer of risk that investors should carefully consider.'
He added that Musk's political influence may create a buzz and generate momentum, but it also brings about challenges, particularly concerning 'political polarization and unpredictable decision-making.'
As investors weigh the possibilities of Musks new ventures, heres a closer look at what investing in each entity might entail:
X Money
Investing in X Money may prove to be particularly challenging, as it is not easy to acquire shares in privately held companies, according to Collins. 'You cant simply log into your brokerage account and purchase shares of X Money like you would with Tesla,' he explained. 'Investing in private companies entails a liquidity risk, meaning your capital could remain tied up for months or even years before you see any return.'
X TV
When it comes to X TV, Collins points out that breaking into a market already dominated by established media players poses significant hurdles for Musk. Managing his existing businesses while attempting to carve out a niche in the competitive streaming space may stretch Musks resources thin.