In one of a series of wild tweets posted last week, Elon Musk said he would “sell almost all physical possessions” and would “not own a house”. He seems to actually keep that promise, as recorded in a great story in The Wall Street Journal on Musk’s personal finance that you should read.
According to WSJeven though it’s valued at $ 39 billion on paper:
… he sometimes has to borrow large amounts of money to pay for his lifestyle and business investments without liquidating stocks that help him maintain control over the businesses he runs. About half of its Tesla shares are pledged as security for personal loans, a financial report dated April 28 shows. To maintain control of the Silicon Valley automaker, it’s important for him to maintain its equity stake – around 20%, or around $ 29 billion at its current valuation.
Musk isn’t taking a salary at Tesla either, but he’s apparently eligible for more than $ 1 billion worth of stock options this week. To get this money, he needs a feast for the eyes $ 592 million to exercise the option according to the WSJ. It is not clear whether Musk has the cash to exercise this option or whether the money from the home sales will be used to pay the sum. “Mister. Musk said he wasn’t selling his property because he needed the money WSJ reported.
The article also lists a few times Musk has said he was cash poor. Here is an example:
Before Tesla went public, Mr Musk told a judge during a contentious divorce with his first wife that he ran out of cash and took out emergency loans from friends to support his family and pay the cost of living.
Here is another one:
Last year, Mr Musk’s ability to access cash was re-established during a libel suit for statements he made about a man who helped rescue a Thai soccer team from a flooded cave in 2018. A lawyer on the case said on a file that Mr Musk had described himself as “financially illiquid”.
The whole article has a lot of history about Musk, interesting information about his finances backed up by regulatory filings, and numerous quotes from Musk himself, and I sincerely recommend taking 10 minutes to read it in full.
Oh, and if you’re wondering about the status of Musk’s homes, he has three California mansions up for sale and plans to sell four more in Bel-Air, like these WSJ. As soon as the houses are sold, Musk doesn’t yet know “where I’ll be staying, but probably rent a small house somewhere,” he said in an email to the company WSJ.