Elon Musk’s ongoing clash with President Donald Trump is not just stirring up activity on X, his social media platform—it’s also putting xAI, his newly merged parent company, under financial pressure. After the merger of X and xAI earlier this year, Musk is seeking $5 billion in debt funding along with an extra $300 million through secondary sales, as Bloomberg has reported.
The tension between Musk and Trump has added another twist to the story. Morgan Stanley gathered xAI executives to pitch their case to potential investors, a move prompted by the escalating public feud. While the bank originally aimed to sell the debt at full price, market circumstances meant it ended up trading at roughly 95 cents on the dollar.
This situation has raised concerns among investors, with some suggesting that Morgan Stanley might have to offer more attractive terms through higher interest rates to secure buyers. For anyone following the tech and finance landscape, it’s a reminder that even the most prominent names face unexpected challenges.
