Elon Musk’s Online Feud with Trump Could Impact xAI’s Debt Sale
The ongoing feud between Elon Musk and President Donald Trump on social media has not only attracted attention to Musk’s platform X (formerly Twitter) but also raised concerns for the platform’s parent company xAI.
Earlier this year, Musk merged X and xAI, and according to a recent Bloomberg report, he is now looking to raise $5 billion in debt, along with a reported $300 million in a secondary sale, to support the combined entity.
However, the timing of this debt sale coincides with the deterioration of Musk’s relationship with Trump, leading to some uncomfortable moments for xAI. As The Wall Street Journal notes, while Morgan Stanley was pitching potential investors on Thursday, Musk and Trump were engaged in a public spat on their social media platforms.
Reports suggest that the debt, which Morgan Stanley had hoped to sell at 100 cents on the dollar, was trading at 95 cents on the dollar at times on Thursday. This decline in value may require Morgan Stanley to offer additional incentives, such as a higher interest rate, to attract investors.
