Despite recent volatility in Tesla’s share price, investor confidence in Elon Musk’s broader ambitions remains surprisingly resilient. Tesla continues to trade at valuation multiples not only well above legacy carmakers but also most of its tech peers. 

This enduring premium reflects a broader belief in Musk’s ability to deliver transformative innovation across emerging industries, including robotics, driving software and, increasingly, artificial intelligence. That same optimism now extends to his latest venture: XAI Holdings, the combination of X, formerly Twitter, and his xAI company.

At first glance, the vision appears revolutionary. Musk wants X to become “the everything app,” a platform that seamlessly blends social media, AI and payments. His AI venture, xAI, is meant to embed AI directly into the user experience. Musk is reportedly seeking $20bn in new funding for this effort, which would value the company at over $120bn — an ambitious target that leans heavily on the same investor faith that sustains Tesla’s extraordinary multiples.