The world’s second richest man is reportedly considering unpacking and moving to another state where he will not pay as much tax.
Tesla and SpaceX founder Elon Musk have already threatened to move the electric vehicle company from California, where he said it is the only remaining carmaker, following growing frustration with coronavirus stops.
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Frankly, this is the last straw. Tesla is now immediately moving its headquarters and future program to Texas / Nevada. If we even keep the Fremont manufacturing activity at all, it depends on how Tesla is treated in the future. Tesla is the last carmaker left in CA.
– Elon Musk (@elonmusk) 9 May 2020
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Now he is considering moving out of California as well, according to CNBC, which quoted “close friends and colleagues” as the multi-billionaire.
The old adage that everything is bigger in Texas does not apply to taxes.
Texas has no state income tax while California is the highest in the country with 13.3 percent.
In 2018, Tesla’s board approved a deal that could give Mr Musk more than $ 50 billion ($ 67.3 billion).
With California’s tax rate, he would face a total tax bill of nearly $ A9 billion if he meets the performance targets that unlock his bonuses.
The state is also considering “super taxes” on high-income earners that Musk would likely qualify for.
Tesla and Mr Musk’s other companies, The Boring Company, both operate in Austin, Texas.
SpaceX has an expanding facility in Boca Chica in the south of the state.
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SN 5 & 6 at Starship Production Complex in Texas pic.twitter.com/8BVRD5VdU7
– Elon Musk (@elonmusk) 11 August 2020
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Earlier this year, Musk revealed that he was selling all of his California real estate as part of his quest not to own a home.
He has partially fulfilled the promise after loosening a number of properties and listing several more.
Tesla is headquartered in Palo Alto and has a factory in Fremont, east of San Francisco … at the moment.