Elon Musk, one of the most prosperous businessmen of all time, was born in Pretoria, South Africa. As the CEO of the private space business SpaceX and the electric vehicle manufacturer Tesla (TSLA), Musk has attained international recognition. Early on, Musk invested in several tech startups.
Tesla's CEO, Elon Musk, must pay an estimated $11 billion in federal taxes on the proceeds he received from the sale of $15.4 billion worth of company stock.
In addition, Musk must pay the state of California, where Tesla was headquartered most of the year, an additional $2 billion in income taxes. Here mentioned are the information about Elon Musk's recent talk about taxes:
Recent update:
The state of California, where Tesla and Mr. Musk have been based up until recently, will also receive a share of the tax payment that Mr. Musk will make next year, which will be made mostly to federal tax authorities.
Elon Musk is the wealthiest person on the planet, and Tesla is valued at about $1 trillion. In the past several weeks, Musk has sold Tesla shares valued at close to $14 billion.
In a US Securities Exchange Corporation (SEC) filing earlier this month, Tesla revealed that it was relocating its corporate headquarters to Texas. Mr. Musk had long since alluded to this plan in media appearances, citing his dissatisfaction with California state legislation and his criticism of Silicon Valley's exorbitant cost of living.
According to the Tax Foundation, a think tank, California has the highest income tax rates among US states and in comparison, Texas has more flexible tax laws and does not collect income tax.
In recent weeks, Mr. Musk has sold approximately $14 billion worth of Tesla shares. Although the sums at stake in Mr. Musk's instance were extraordinary, this was the typical course of action for a business executive concerning expiring stock options.
Elon musk's rare big tax bill:
The majority of Musk's alternatives have yet to be used. Nevertheless, he began exercising his August 2022 expiration date options late last year to purchase an additional 22.9 million shares.
He paid $142.6 million to buy shares valued at $23.6 billion, resulting in $23.5 billion in taxable income subject to a federal rate of roughly 41% in 2021.
In addition, Musk sold a tiny portion of his extra shares, resulting in a $5.8 billion tax at a lower capital gains rate. He has tweeted about the approximately $11 billion federal tax bill that was undoubtedly the outcome of all those stock trades.
Musk has more options than the ones he exercised last year, which resulted in an enormous tax bill. According to Tesla's financial report this week, Musk now has 67.5 million options after receiving an additional 8.4 million.
Bottom line:
There is a fair likelihood that during those five years, his major companies and tax bills will be the same if he again pays zero federal taxes. Despite the inevitable mistakes, Musk has defied naysayers, disrupted businesses, and generated the most money from all game changers, including PayPal, Tesla Motors, SolarCity, and SpaceX.
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