Elon Musk Puts Two Homes On The Market After Tweeting He Would Sell Most Of His “Physical Possessions”
By now everybody has had a chance to digest Elon Musk’s Friday
meltdown Twitter tirade that lobbed off almost $15 billion in Tesla market cap. Among the various disjointed – and unvetted in violation of Musk’s settlement with the SEC – tweets from Musk, which among others claimed that “Tesla stock price is too high” something which the market clearly disagrees with this morning, was a claim that he was going to sell almost everything that he owned, including his houses:
I am selling almost all physical possessions. Will own no house.
— Elon Musk (@elonmusk) May 1, 2020
Many spent much of Friday speculating about Musk’s mental state: Was he serious? Is he speculating in the real estate market now? Could the Feds be onto him? Is he at risk of leaving Tesla? Has he been microdosing – or perhaps macrodosing? Could he really be on the edge of liquidating everything he owns?
But now it seems Musk is starting to follow through, because on Sunday Musk indeed put two of his homes on the market, and according to Bloomberg Musk is looking for $39.5 million for the two properties, which are listed as for sale by owner.
The timing is certainly peculiar: after all, it isn’t exactly a “seller’s market” at the moment.
“Fewer buyers were coming from China, Russia and the Middle East amid international tensions, and limits on state and local tax deductions dampened the appeal of owning California homes for wealthy U.S. buyers,” Bloomberg commented on Monday.
LA Mag also explored the idea of Musk selling his homes in a recent article that laid out his properties. Musk currently owns 7 homes that are worth an estimated $100 million. Six of them are located near one another in a gated community in Bel Air. The first home listed on Sunday was purchased in 2012 for $17 million. It has 7 bedrooms, 11 bathrooms, solar panels on the roof and is 20,248 sq. feet.
Another home listed was previously owned by Gene Wilder (as Musk noted in one of his follow up Tweets). The home was set up to be a private school facility for his children and family friends.
“Just one stipulation on sale: I own Gene Wilder’s old house. It cannot be torn down or lose any its soul,” Musk said.
In 2015, Musk purchased two other homes while he was dating Talulah Riley. One was a main house that is on the same street as the Wilder house, and the second is a ranch house that overlooks the main house.
Another house is a modern looking abode that is across the street from the 2015 Talulah homes. It was purchased because it was directly above the other home, according to LA Mag, though the purpose is unclear. There is speculation it may have had something to do with freeing up a path for air travel, though that is unconfirmed.
And his latest purchase cost Musk $6.4 million in 2019. This home is far older, having been owned by its previous owners since 1964. It’s assessed value then was just $310,000.
All told, if Musk had owned these homes free and clear and was looking to free up cash, he would net about $100 million. However, we noted in early 2019 that Musk had mortgaged most of these properties with Morgan Stanley.
We noted in 2019 that Musk took out $61 million in mortgages on five of the properties in California. Four of these properties are in the Bel Air neighborhood.
The loans were signed off on by Morgan Stanley and represented $50 million in new borrowing for Musk at the time. One loan was a refinancing on a 20,200 plus sq. foot property that Musk purchased in 2012 for $17 million. The initial $10 million loan he took on the property had turned into a $19.5 million debt, with a monthly payment of about $180,000.
Not very financially savvy for a guy that’s supposedly worth $33 billion.
Nothing to see here, we’re sure…
Mon, 05/04/2020 – 10:58