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Private Elon Musk companies are a hot commodity in private marketsWith the value of Spacex, Neuralink, The Boring Company and XAI, which shot 45% of last year’s presidential election, according to data on the Caplight secondary market platform. However, as investors in private markets are chasing shares of Musk private companies, Tesla shares have lost about half of their value.
While the price of Tesla’s shares recently beaten, the fall from Grace One Jpmorgan may not be equal, the value of Elon Musk private companies has increased in the four months since Donald Trump won the election.
The cumulative value of Spacex, Neuralink, The Boring Company and XAI has increased by 45% in private markets from last November, according to data provided to Fortune from the Caplight Secondary Market Trade Platform. The Musk X Social Media Company was not included in the calculation due to lack of interest from investors in the secondary market.
The shares of private companies are not indicated on stock exchanges, so when early employees or VC want to unload the shares, they do so through a more difficult process on the secondary market. Caplight helps to facilitate these sales on the market outside a warehouse by summarizing data on hundreds of brokers and coinciding institutional investors with brokers, similar to how Zillow coincides with future home buyers with real estate agents in the housing market.
A leading rally among Musk private companies is his artificial intelligence company, XAI, which has gained traction among investors who want to take advantage of the latest high-tech achievements. The cost of the company’s shares has increased by 110% after the November election, according to Caplight, which gave the launch a valuation of about $ 96 billion.
It is borne that AI is raising funding of $ 10 billion in a $ 75 billion estimate, Bloomberg reported last month. Caplight’s evaluation for XAI is higher due to increased demand from institutional investors outside of participation in the reported funding round.
SpaceX shares have also jumped more than 50% after the election, according to Caplight. The worst of non-Musk businesses was the boring company, which had a 7.8% decrease in the value of last year’s elections.
Unlike the star performance of its private companies, the shares of the only public company of Musk, Tesla, lost about 50% of their value since reaching $ 479.86 in December. EV Company shares closed 3% on Thursday at $ 240 per share.
Private companies have remained in a long time for years, opening more opportunities for investors in the secondary market. The average company was just under 11 years old in IPO by 2021, compared to seven years in 1980, according to Morningstar, and Caplight CEO, Havier Avalos, said some technology companies, in particular, remained private for years due to the relative ease of fundraising.