Elon Musk, CEO of Tesla and SpaceX, wants to move from California to Texas, a move that would theoretically save him from a massive tax bill on personal income, CNBC reported.
In July, Musk announced that Tesla was building its next US factory in Austin, where its Cybertruck, Model Y, Model 3, and Semi vehicles will be assembled.
In order to construct the plant on 2,100 acres east of Austin’s airport, the corporation received tens of millions of dollars in local property tax cuts over the objections of some local residents.
It is planned that the factory will start producing its first vehicles in 2021. Musk’s Boring Business also has operations in Austin, and in Boca Chica, Texas, SpaceX has a factory.
Musk tweeted earlier this year that he was “selling nearly every physical possession.” He won’t own a home.
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 recent months, Musk has clashed with officials in California over pandemic lockout orders that briefly shut down Tesla’s Fremont factory. Musk said in May that he was going to move the automaker out of town.
Tesla said in November that staff at its Fremont plant were “essential workers” and excluded from the current statewide COVID-19 health orders from California.
If Musk did change his permanent address to Texas, as CNBC reports, he would pay considerably less in taxes. Musk stands to receive more than $50 billion in stock options and if he lived in California, will have to pay income taxes on the gains as he uses them. However, Texas has no tax on personal income.