Elon Musk Pursuing 3 New Business Ventures in 2025: Should You Invest?
April 19, 2025
Elon Musk’s company xAI has acquired X, the social media platform formerly known as Twitter, for $33 billion. Other business ventures he’s expanding in 2025 include the launch of X Money, a fintech platform, and X TV, a streaming media service. According to CEO Linda Yaccarino, the goal is to transform X into an “all-encompassing ‘everything app,’” reported Business Today.
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With the potential to invest in these emerging ventures in the future, the question is: Should you? GOBankingRates tapped financial experts for insights about market trends, potential gain vs. risk and past stock performance of Musk’s publicly traded companies to help guide this decision.
Michael Collins, CEO and founder of WinCap Financial, advises against investing in Musk’s business ventures while navigating this challenging market due to Musk’s balancing act of running the Department of Government Efficiency (DOGE) while he continues oversight of Tesla, which has shown his inability to handle the workload.
“Tesla sales have tanked 13% in the first three months of the year, highlighting the largest drop in deliveries in the company’s history,” Collins said. “This, paired with Tesla stock dropping 35% in the last three months, indicates our bearish outlook on not only Tesla but Musk’s companies in general.”
Investor Brandon Hardiman, owner of Yellowhammer Home Buyers, echoed this sentiment.
“While Elon Musk’s businesses all draw on disrupting spaces — fintech, AI and streaming media — these spaces have [massive] potential, but the volatility attached to the Musk brand is a double-edged risk,” said Hardiman.
He noted that while Musk’s political influence might create attention and momentum, it introduces “political polarization and capricious decision-making.”
Here’s a look at investing in each new X business venture.
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Investing in X Money could be difficult, because it’s not easy to invest in privately held companies, according to Collins.
“You can’t log into your brokerage account and buy shares of X Money like you could with Tesla; investing in private companies creates a liquidity risk that could cause your money to be tied up for months or even years,” he explained.
It would be difficult for Musk to penetrate this market with established players while managing his other businesses, Collins said.
“The streaming service industry is already highly competitive, with giants such as Netflix, Amazon Prime, Disney+ and Hulu all owning a large share of the market,” he explained.
With the AI-driven market expansion, xAI could attempt to carve a niche in the market, but with such fierce competition, it would be unlikely that the company would gain traction.
“Given the current AI boom, it seems compelling, but competing with OpenAI and Google will be an uphill battle unless it offers clear differentiation,” Collins said.
Given the challenges of investing in private companies and going up against industry giants who dominate markets, paired with Musk’s recent track record, it would be a risky move for investors to put their money into any of the three, even if it were easy to do so.
Musk will likely see difficulty breaking into these markets while juggling his existing ventures.
“Musk’s desire to start several business ventures all at once creates a risk that I would stay away from,” said Collins. “If he were to remove himself from the government completely, there might be room for a different discussion.”
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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