Elon Musk's companies increase their value in the secondary market despite Tesla's fall

Elon Musk has experienced a true "rollercoaster" effect over the past few months. After the continuous decline in the value of Tesla's shares, one of the most important companies in the automotive sector, other companies owned by South Africa have experienced the opposite: a substantial increase in their value in the secondary market.

According to the specialized media Fortune, SpaceX, Neuralink, The Boring Company, and xAI, in their accumulated value, have increased by 45% since the U.S. presidential elections in November 2024.

However, it has been xAI, Musk's artificial intelligence company, that has achieved the greatest increase in value by obtaining a growth of 110% since November of the previous year, according to the secondary market trading platform Caplight.

What does this difference in values among Musk's companies mean?

In the case of SpaceX, the aerospace company of the current chief advisor of the Department of Government Efficiency (DOGE), its value has increased by 50% since Donald Trump's victory over former Vice President Kamala Harris.

Despite this, but to a lesser extent than Tesla, The Boring Company has seen a 7.8% decrease in its value during the same period.

The reason for this marked inequality in the performance of Musk's companies originates, in the first instance, from their commercial development. While Tesla is listed on the stock exchange, the rest of the companies owned by the world's richest man "move" in the secondary market.

This would also have a direct effect on investors' interest in technology companies in the secondary market. Due to the policies of these types of companies, which are not publicly traded, investors have greater opportunity to access shares of private entities.

According to Caplight's CEO, Javier Ávalos, as revealed to Fortune, these companies seek to remain private due to the relative ease of raising funds. Unlike publicly traded companies, they are not subject to analysts' expectations or quarterly reports.

Therefore, Musk's companies that are in the secondary market have obtained a substantial increase in value in recent months. The opposite of what has happened with Tesla, which has faced a series of adverse circumstances, such as the competitive automotive market and Musk's controversial actions in his public role at the helm of DOGE.

*This article has been automatically translated using artificial intelligence