Select Page

Miller: Elon Musk Buying Spree Isn’t Where You Think

Miller: Elon Musk Buying Spree Isn’t Where You Think

Tesla Inc. founder Elon Musk has been on a buying spree, but it’s not in what you might think it is.

During his testimony in a defamation lawsuit in Los Angeles, Musk said he’s cash-strapped, which, considering how his wealth is calculated, actually makes sense.

But The Wall Street Journal examined records and found that Musk and some limited-liability companies tied to him have spent more than $100 million to buy seven pieces of property in the Bel Air neighborhood of Los Angeles.

Interestingly enough, the property being bought sits around his 20,248-square-foot mansion.

The report found Musk and/or the LLCs with ties to him, own two houses on the same street as his mansion, as well as houses on an adjacent street.

All of this as Musk claimed he doesn’t have any money.

Musk, according to CNBC, doesn’t know his net worth but it has been calculated at between $23 billion and $27 billion.

The reason he doesn’t know and why it fluctuates is because a majority of his net worth is tied up in holdings of Tesla and SpaceX stock. As the stock price moves up and down, so does Musk’s overall value.

Musk’s value becomes even more complicated when you factor in that his compensation is based on the financial milestones of the companies — like reaching a certain stock price.

Tesla has refuted any claims that Musk earns a salary or bonuses. In a statement to Business Insider after the publication claimed Musk earned $2.3 billion in 2018, the company said:

“His only compensation is a completely at-risk performance award that was specifically designed with ambitious milestones, such as doubling Tesla’s current market capitalization from approximately $40 billion to $100 billion,” the statement said. “As a result, Elon’s entire compensation is directly tied to the long-term success of Tesla and its shareholders, and none of the equity from his 2018 performance package has vested.”

So, back to the houses.

It would appear Musk is attempting to buy out a neighborhood to get rid of neighbors.

Hey, Facebook CEO Mark Zuckerberg did the same thing in Palo Alto, Calif., and the late Microsoft co-founder Paul Allen bought up lots to create his own compound in Washington state.

My question is: why?

I mean, I understand if you have the money you can spend it on whatever you want, but … I don’t understand. You have a mega-mansion already, which comes with a degree of privacy.

Perhaps it is an investment play — although he just mortgaged five of his homes for $61.3 million. Plus, according to the WSJ piece, the only ones sold were tied to either Talulah Riley or Justine Musk — both ex-wives of Musk.

It just seems like being greedy for the sake of being greedy.

Especially for someone as “cash-strapped” as Musk claims to be.