Elon Musk's Private Companies Thrive Amid Tesla's Decline
Tesla's stock has dropped 50% since its peak in December, contrasting sharply with the rising value of Elon Musk's private companies. Notably, SpaceX, Neuralink, The Boring Company, and xAI have seen a collective increase of 45% in their market value since last year's presidential elections. xAI has led this growth with a 110% rise, attracting significant investor interest.
SpaceX also reported over a 50% increase in value, while The Boring Company experienced a slight decline of 7.8%. This disparity highlights varying investor interest across different tech sectors, with the secondary market providing crucial access to private company shares.
Private tech firms are choosing to stay off the public market longer, benefiting from easier fundraising without the pressures of quarterly reporting. Companies like SpaceX often conduct share buybacks to maintain liquidity for their investors, allowing them to grow without the constraints of being publicly traded.