According to BlockBeats, Morgan Stanley is reaching out to a broader range of investors to boost demand for a $5 billion debt issuance by Elon Musk's AI startup, xAI Corp. This transaction highlights the impact of tensions between Musk and U.S. President Donald Trump.
Insiders report that when Morgan Stanley initiated the debt offering early last week, it had already secured over $3.5 billion in subscription orders. Some investors believe this indicates the deal will soon be oversubscribed, a common occurrence in Musk's previous financing projects. However, as of Monday, demand had only increased to approximately $5 billion. Consequently, Morgan Stanley has begun contacting smaller lending institutions that were not initially approved to participate last week.
