Fidelity Fund Once Again Reduces Valuation of Elon Musk's X

Fidelity, a major investment firm, has reported that its shares in X (formerly known as Twitter) are now valued at 71.5% less than when Elon Musk initially bought the social media company in October 2022. This decrease in estimated value has been consistent over the past year, largely due to a series of crises at the company, many of which were influenced by Musk. This information was disclosed in a recent securities filing by a Fidelity mutual fund.

Fidelity's Blue Chip Growth Fund reported its shares of X to be worth just under $5.6 million in its latest filing, dated Dec. 30 and reporting information through Nov. 30. This represents less than .01% of the fund's total value, which is over $49 billion. This is a significant decrease from the $19.66 million value of its stake around the time of Musk's acquisition of Twitter and 14.5% less than the $6.55 million value reported last April.

Axios initially reported Fidelity's latest filing. Last summer, Fidelity did make slight increases to the estimated value of X multiple times, coinciding with Linda Yaccarino's appointment as X's CEO. However, since then, Fidelity has consistently reduced the estimated value of its X shares.

With X being privately held, Fidelitys estimates have emerged as a closely watched indicator of Xs health and a reflection of the attitudes of Musks own investors.