“Elon Musk may be the leading beneficiary of Donald Trump’s re-election, even more so than Trump himself. A recent report from Bloomberg discloses that Musk’s social media platform X is currently seeking to raise capital from investors at a valuation of $44 billion. Interestingly, this is the exact amount Musk paid for the company when he bought the then known Twitter platform in October 2022.

Since Musk’s takeover and subsequent rebranding of the platform as X, its revenue has faced a staggering decrease. The platform is now making nearly half of its earlier revenue as Twitter, losing out on billions of dollars. Musk, along with his financial supporters, appears to have overpaid for the company. For instance, Fidelity, one of the investors, calculated a 79% loss in value of its investment compared to when Musk purchased the company.

However, a turning point came with the U.S. presidential election. Musk pledged his support to Trump, creating a PAC to support the Republican candidate with significant financial backing. This move paid off when Trump emerged victorious, appointing Musk to manage the Department of Government Efficiency (DOGE). This move gave Musk considerable sway over federal expenditure.

Musk’s other ventures, including Tesla and SpaceX, have received billions in government funding over the years. However, his close association with President Trump is now proving beneficial for his businesses in ways that go beyond government contracts.

Despite suffering a significant loss in advertisers due to content issues and Musk’s own controversial comments, the platform has seen some advertisers signal their return after the election. Brands like Apple have resumed advertising on X after a long hiatus.

Moreover, certain investors in Musk’s X, who were finding it difficult to sell their debt, recently found success. As per Bloomberg, they managed to sell billions of dollars of this debt at “no discount to face value”, suggesting they recouped most, if not all, of their initial investment.

With X gearing up to facilitate financial transactions on the platform and incorporate Musk’s AI venture, xAI, and its Grok chatbot, the company is now seeking to raise funds at the same $44 billion valuation Musk initially “overpaid”. Thanks to Trump’s election, Musk is now in a stronger position to secure the required capital.”