Elon Musk’s electric automaker Tesla and rocket company SpaceX have benefited from his new role as President Trump’s right-hand man. When Musk acquired social media platform X for $44 billion in 2022, banks financed over a quarter of the purchase with loans. Due to investors’ reluctance about X’s floundering business at the time, banks kept much of this debt.
However, after aligning himself closely with President Trump, investors have become more confident in Musk’s companies. As a result, banks have sold $4.7 billion of X’s debt, exceeding their original intention of selling only $3 billion.
X has seen significant improvements in its revenue, particularly since the Super Bowl last Sunday, where it earned $7.9 million in related advertising revenue. Advertisers like Amazon and Apple have returned to the platform after initially fleeing over Musk’s controversies.
Investors are attracted to X due to its improved financials and cost-cutting measures, including reducing staff by more than 80%. This shift has led investors to believe that Musk’s new role in the administration will ensure timely repayment of the debt. Additionally, Musk’s companies have benefited from his ties to the White House, with Palantir engineers now exclusively using an AI chatbot designed by Musk.
Source: https://www.nytimes.com/2025/02/13/technology/elon-musk-x-debt-sale.html