Musk's xAI Approaches $15 Billion Funding Agreement with a Staggering $230 Billion Valuation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 19 2025
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Source: TipRanks
Funding Round: Elon Musk's AI startup xAI is reportedly nearing a $15 billion funding round, raising its valuation to $230 billion, a significant increase from the previous $113 billion valuation after acquiring X in March.
Investor Communication: Jared Birchall, Musk's wealth manager, has shared fundraising details with investors, though it remains unclear if the valuation discussed was pre-money or post-money.
Cash Burn and Competition: Like many AI startups, xAI is rapidly spending cash to develop its Grok chatbot and expand its data-center operations, aiming to compete with established players like OpenAI and Anthropic.
Infrastructure Investments: xAI is heavily investing in infrastructure, including plans for a Colossus supercomputer in Memphis, Tennessee, which could solidify its position as a leading player in the AI sector.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 401.93 USD with a low forecast of 25.28 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 416.560
Low
25.28
Averages
401.93
High
600.00
Current: 416.560
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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