Elon Musk, Tesla and SpaceX CEO, plans on moving to Texas from California. This move will potentially save him from a huge personal income tax bill.
Musk announced in July that Tesla was building its next US factory in Austin, where it will produce its Cybertruck, Model Y, Model 3, and Semi vehicles. The company received tens of millions of dollars in local property tax breaks to build the plant on 2,100 acres east of Austin’s airport.
The factory is expected to begin delivering its first vehicles in 2021. Musk’s Boring Company already has operations in Austin, and SpaceX has a facility in Boca Chica, Texas.
Musk tweeted earlier this year that he was “selling almost all physical possessions. Will own no house.”
Pandemic lockdown orders temporarily shuttered Tesla’s Fremont plant. In May, Musk said he was going to move the automaker out of state.
Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependen on how Tesla is treated in the future. Tesla is the last carmaker left in CA.
— Elon Musk (@elonmusk) May 9, 2020
In November, Tesla said employees at its Fremont plant were “essential workers” and exempt from California’s new statewide COVID-19 health orders.
If Musk does change his permanent address to Texas, he’d pay significantly less in taxes. Musk stands to earn more than $50 billion in stock options, and would have to pay income taxes on the profits when he exercises them if he remained in California.
Fortunately for Musk, Texas has no personal income tax.