X, formerly known as Twitter, has witnessed a staggering 71% drop in its value since the high-profile acquisition by Tesla CEO Elon Musk in late 2022.

Fidelity, a prominent investment group, conducted a valuation on January 1, 2024, marking the second significant devaluation of X in 2023.

Musk’s entry into the social media landscape was nothing short of groundbreaking, with the initial acquisition costing him a whopping $44 billion. Fidelity played a crucial role in facilitating the takeover, contributing $33.5 billion in equity investment, while the remaining funds were secured through debt financing. The deal, which concluded in October 2022, resulted in Twitter’s transition from a publicly traded entity to a privately held company.

Despite Axios reporting this substantial devaluation, both Twitter and Fidelity have yet to respond to inquiries from FOX Business regarding the latest valuation.

Musk, a vocal critic of Twitter prior to the acquisition, voiced concerns about its impact on democracy and civilization. He attributed these concerns to what he described as a left-wing “mind virus” propagated by the platform’s leadership and employee base.

The early stages of Musk’s leadership at X were marked by headline-making decisions, including a significant reduction in the workforce and a bold stance against advertisers. Musk dismissed advertisers’ concerns and even threatened to distance the platform from them.

In a notable incident in late November, Musk responded defiantly to advertisers leaving the platform, predicting that the advertising boycott would lead to the demise of the company.

As X continues to grapple with valuation challenges and Musk’s unconventional leadership style, the social media giant remains under intense scrutiny, with industry observers closely watching its future trajectory.