Elon Musk's X seeks $44 billion valuation recovery amid financial struggles

Tesla shareholder Ross Gerber has expressed deep concerns about the company's future, predicting a potential stock crash of up to 50% due to issues like high valuation and doubts about its Full Self-Driving capabilities. Gerber, who has reduced his Tesla stake significantly, highlighted Musk's ambitious plans for an autonomous taxi network as overly optimistic, particularly given Tesla's reliance on cameras instead of LIDAR technology. Meanwhile, Musk's other venture, X (formerly Twitter), is facing financial difficulties, including a significant drop in revenue since his acquisition, and is reportedly threatening former advertisers to regain spending. Despite these challenges, X is in discussions for new financing that could restore its valuation to $44 billion, aided by Musk's political influence following Donald Trump's election. Additionally, Musk's ventures in AI are thriving, with xAI achieving a $50 billion valuation and plans for further funding, which may bolster X’s financial situation. Overall, the intertwined fortunes of Musk's companies reflect a mix of optimism and uncertainty as they navigate complex market conditions.