Elon Musk's privately owned company, X (formerly Twitter), has been revalued at $19 billion, according to the company's new employee equity compensation plan. The company's current valuation is based on Restricted Stock Units (RSUs) being issued to employees at a share price of $45, as reported by two sources familiar with the matter.
An email was reportedly dispatched to staff regarding the equity grant agreements on Monday, as per Fortune's viewing of a screenshot.
The updated valuation has been announced a year after Musk secured the platform for a hefty $44 billion. Meanwhile, reports suggest that banks involved in financing the deal are still making efforts to mitigate the impact on their financial positions and anticipate approximate losses of $2 billion, as reported by the Wall Street Journal.
In a July post, Musk revealed that X is "still negative cash flow" due to a "50% drop in advertising revenue plus heavy debt load."
This valuation news comes amid the notable drop in Twitter's worth since Musk's acquisition and hints at the significant financial challenges faced by the company currently known as X.