Elon Musk’s X Corp. secured $5.5 billion in debt financing, exceeding expectations as investors bet on Musk’s influence and X’s improving finances. The company’s 2024 revenue was $2.7 billion, with $1.25 billion in adjusted earnings, buoyed by financial transfers from Musk’s AI firm, xAI, in which X holds a 10% stake.
Advertisers, including Amazon, are returning, boosting confidence in X’s turnaround. Banks, which financed Musk’s 2022 buyout, offloaded risky loans, but $6 billion in debt remains.
Despite progress, X faces high interest costs exceeding $1 billion annually, leaving limited funds for future investment.