Musk's Political Rise: A Financial Lifeline for Banks?

Elon Musk's political connections might assist Wall Street banks in selling $13 billion of debt linked to his acquisition of the platform X. With Musk's ties to President-elect Donald Trump, banks anticipate improved business prospects for X, aiding debt liquidation without substantial losses.

Elon Musk's growing political clout has banks on Wall Street optimistic about recouping $13 billion in debt tied to his purchase of X, formerly Twitter, recent sources suggest. The potential elevation in X's market value as a result of Musk's political alliances could alleviate the financial burden of holding onto this debt.

A consortium of lenders, featuring names like Morgan Stanley and Bank of America, is hopeful that Musk's proximity to President-elect Donald Trump may boost X's prospects. This development might enable banks to sell the debt without incurring massive losses.

The debt's value suffered following Musk's controversial management changes at X, but renewed interest during key events signifies a turnaround. Analysts speculate that Musk's close ties to Trump, who has reinstated his presence on X, might further bolster Musk's ventures, including Tesla, recently valued over $1 trillion post-election.

(With inputs from agencies.)