Musk and Trump’s public clash may impact xAI’s $5 billion debt deal, as investor confidence dips and debt trades below target price.
The heated clash between Elon Musk and Donald Trump may be more than just an online drama. While it brought huge traffic to Musk’s platformX (formerly Twitter), it could also create major problems for the platform’s parent company, xAI.
Earlier this year, Musk merged X and xAI, and now he’s planning to raise $5 billion in debt and another $300 million in a secondary share sale to support the combined business.But the timing couldn’t be worse. As Musk and Trump exchanged angry posts online, Morgan Stanley gathered xAI executives on Thursday afternoon to pitch the deal to investors. The clash between two infl
Investor Confidence Shaken as Debt Trades Below Target Price
Morgan Stanley hoped to sell the debt at 100 cents on the dollar, but it slipped to 95 cents at times, according to market traders. That drop reflects investor concerns, especially with the public feud casting a shadow over the deal. Now, the bank may have to offer better terms like higher interest rates to attract buyers.
Despite the buzz around Musk’s bold plans, the Trump dispute has turned into a serious distraction. For a deal of this size, investor trust and public perception are key. If tensions continue, it could directly impact the success of the $5 billion funding goal.
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