Apparently, the second richest man in the world is considering packing up and moving to another state where he would not pay such a high tax.
Tesla and SpaceX founder Elon Musk has already threatened to move the electric car company out of California, where he said it is the only remaining car maker, after mounting frustration with the coronavirus lockouts.
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Honestly, this is the last straw. Tesla will immediately relocate its headquarters and future programs to Texas / Nevada. If we keep Fremont production at all, it will depend on how Tesla is treated in the future. Tesla is the last car maker left in California.
– Elon Musk (@elonmusk) May 9, 2020
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Now it is also considering moving out of California, according to CNBC, which named the multimillionaire’s “close friends and associates”.
The old saying that everything is bigger in Texas doesn’t apply to taxes.
Texas has no state income tax, while California is the highest in the nation at 13.3 percent.
In 2018, Tesla’s board of directors approved a deal that could bring Mr. Musk over $ 50 billion ($ 67.3 billion).
At the California tax rate, he will have to pay a tax of almost $ 9 billion if he meets the performance targets that unlock his bonuses.
The state is also considering introducing “super taxes” on high-income individuals for which Musk would likely qualify.
Tesla and another Mr. Musk’s company, The Boring Company, operate in Austin, Texas.
SpaceX has a developing facility in Boca Chica, south of the state.
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SN 5 and 6 at Starship Production Complex, Texas pic.twitter.com/8BVRD5VdU7
– Elon Musk (@elonmusk) August 11, 2020
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Earlier this year, Musk revealed that he was selling all his real estate in California in an effort to avoid owning a home.
He has partially delivered on his promise after unloading a number of properties and listing several more.
Tesla is based in Palo Alto and has a factory in Fremont, east of San Francisco… for now.