Elon Musk selling all physical possessions, including two homes
The Tesla CEO wants $39.5m for two Bel Air properties, but despite Tesla shares surging 68%, a pandemic isn’t a great time for real estate
New York/Los Angeles — Tesla CEO Elon Musk listed two of his California homes for sale on Sunday, days after announcing that he would get rid of most of his possessions.
He’s seeking a combined $39.5m for the Bel Air properties, including one that was previously owned by the late Gene Wilder, according to the listings on Zillow. Both are for sale by owner.
Musk posted more than a dozen tweets in less than 75 minutes on Friday, including one in which he said he’s selling “almost all” his physical possessions. In another, he said he believed Tesla’s stock price was too high, prompting a 10% plunge on the day.
As for high-end Los Angeles real estate, it’s not exactly a seller’s market at the moment. Sales of luxury homes were already suffering from a supply glut and weak demand before the coronavirus pandemic stopped most showings. 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 US buyers.
With demand slowing, more and more would-be sellers are taking their homes off the market, said Beverly Hills real estate agent Jade Mills. But shrinking inventory means some homes will still find buyers.
“People are still having to move and relocate, even within California,” she said. “I see people still having to buy and sell. This isn’t necessarily bad timing.”
Even with Friday’s stock swoon and the pandemic, Musk and Tesla are having a pretty good 2020.
Shares surged 68% this year up to Friday, helping boost his net worth by $8.3bn, the second-most of anyone in the 500-member Bloomberg Billionaires Index, after Amazon’s Jeff Bezos, the world’s richest person. Musk ranks 24 on the list, with a $35.9bn fortune.
Tesla rebounded on Monday, advancing 4.7% to $734.08 at 1.38pm in New York.
Musk bought the two homes in 2012 and 2013 for a total of about $24m. They form part of a five-house collection he owns overlooking Bel-Air Country Club.
In 2018 he turned to Morgan Stanley for $61m worth of mortgages. The two homes he’s now looking to unload account for about $26.3m of that total.
Bel Air is among the most expensive districts in Los Angeles. The median home value in the 90077 ZIP code is $2.78m, according to Zillow. Notable Bel Air homeowners include US treasury secretary Steven Mnuchin and Beyoncé.
Business Insider reported on the real estate listings earlier on Monday.