It is said that the world’s second richest man is considering packing and moving to a different state where he won’t pay as much tax.
Tesla and SpaceX founder Elon Musk has already threatened to move the electric vehicle company out of California, where he said it is the only remaining carmaker, after increasing frustration with coronavirus locks.
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Actually, this is the last straw. Tesla will now move its headquarters and future programs to Texas / Nevada immediately. If we even retain Fremont’s manufacturing activity at all, it will depend on how Tesla is handled in the future. Tesla is the last carmaker left in CA.
– Elon Musk (@elonmusk) May 9, 2020
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Now he’s considering moving himself out of California as well, according to CNBC who cited the multi-billionaire’s “close friends and associates”.
The old saying that everything is bigger in Texas does not apply to taxes.
Texas has no state income tax while California has the highest in the country, at 13.3 percent.
In 2018 Tesla’s board approved a deal that could net Mr Musk more than $ US50 billion ($ A67.3 billion).
At California’s tax rate, it would face a total tax bill of nearly $ A9 billion if it meets the performance targets that unlock its bonuses.
The state is also considering “super taxes” on high-income earners for which Mr Musk is likely to qualify.
Tesla and Mr. Musk’s other company, The Boring Company, have operations in Austin, Texas.
SpaceX has an expanding facility in Boca Chica in the south of the state.
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SN 5 and 6 at Starship Production Complex in Texas pic.twitter.com/8BVRD5VdU7
– Elon Musk (@elonmusk) August 11, 2020
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Earlier this year Mr. Musk revealed he was selling all of his California property as part of his effort to not own a home.
He has partially repaid the pledge after unloading several properties and listing several others.
Tesla’s headquarters are in Palo Alto and it has a factory in Fremont, east of San Francisco … for the time being.