How Elon Musk Spends His Billions

When you think of a billionaire’s lifestyle, images of sprawling mansions and fleets of supercars often come to mind. Elon Musk, however, presents a paradox that defies these expectations. Despite achieving the unprecedented milestone of a net worth exceeding five hundred billion dollars, he maintains that his personal life is far from extravagant. In a 2021 statement, he revealed residing in a modest Texas home valued at around $50,000. His former partner, musician Grimes, corroborated this, famously telling Vanity Fair that “Bro does not live like a billionaire. Bro lives at times below the poverty line,” even recalling an instance where Musk refused to replace a mattress with a hole in it. Yet, this frugal day-to-day existence stands in stark contrast to his passion for unique vehicles and his acquisition of a private jet collection worth millions, not to mention his headline-grabbing $44 billion purchase of the social media platform Twitter.

There was a time when Musk amassed a significant real-estate collection. Reports indicated he spent approximately $100 million over seven years acquiring properties, primarily in the exclusive Bel-Air area of California. This portfolio featured homes with luxurious amenities like swimming pools, tennis courts, and a private library, including a ranch house once owned by the late actor Gene Wilder. However, in a dramatic shift during 2020, Musk announced on social media his intention to sell nearly all his physical possessions. He declared he would own no house, stating, “Possession just weigh you down,” and emphasizing his devotion to his goals for Mars and Earth. He made a single stipulation for the Wilder property: that it must not be torn down or lose its character. He ultimately sold it to Wilder’s nephew, Jordan Walker-Pearlman, even providing a loan to facilitate the purchase, though he later reclaimed ownership in 2025 after reported repayment issues. By 2021, Musk identified his primary residence as a $50,000 prefabricated house in Starbase, Texas, near his SpaceX facility, which he described as “kinda awesome.” The following year, he claimed to own no home at all, instead rotating through friends’ spare bedrooms when traveling, a habit that former Google CEO Larry Page had noted as far back as 2015.

While his spending on property has dwindled, Musk’s enthusiasm for extraordinary cars remains a significant outlet for his wealth. As the CEO of Tesla, his collection naturally includes iconic models from the brand, such as the first Tesla Roadster, which he famously launched into orbit around the sun. His garage has also housed a historic Ford Model T, a 1967 Jaguar E-Type he coveted since childhood, and a 1997 McLaren F1 that he crashed and later sold after expensive repairs. The most unique vehicle is undoubtedly the 1976 Lotus Esprit from the James Bond film The Spy Who Loved Me. Purchased at auction for nearly one million dollars, this car, nicknamed “Wet Nellie,” was famed for its submarine transformation in the movie, and Musk acquired it with the explicit goal of turning that cinematic fantasy into a working reality.

Musk is also transparent about his substantial investment in private aviation. He owns a fleet of Gulfstream jets, each costing tens of millions of dollars, and he defends this expense as a necessity for his demanding work schedule. He has argued that without the efficiency of private air travel, he would have significantly fewer hours available to manage his companies, using the planes to commute between Tesla and SpaceX locations across the United States and for international trips. This practical justification for luxury stands alongside his more unconventional and highly publicized expenditures, painting a complex picture of how one of the world’s wealthiest individuals chooses to allocate his vast resources.

(Source: BBC)