That’s built on the naive assumption that people won’t seek power in a post scarcity world.
He comes from money, and would have had no problem living anywhere he liked.
Just read his wikipedia page:
> In 1995, Musk, his brother Kimbal, and Greg Kouri founded web software company Zip2 with funds borrowed from Musk's father.
If the YMCA story is supposed to signify "rags", then it's a carefully constructed image and nothing else.