Elon Musk: Tesla boss paid hardly any taxes for a long time - but this year it’s going to be sticky

Created: 12/21/2021, 4:30 PM

By: Patricia Huber

The US tax system actually stipulates that high earners pay more taxes.

The super-rich have found a way out - but Tesla boss Elon Musk still has to pull out a lot of coal.

Palo Alto - How much taxes does the richest person in the world actually pay?

Exactly this question has Tesla * boss Elon Musk * now answered his Twitter followers.

"For those who are wondering, I'll be paying over $ 11 billion in taxes this year," wrote Musk.

That corresponds to the equivalent of around 9.7 billion euros.

With assets of over $ 243 billion, this looks like peanuts.

But for Musk it is arguably the highest tax sum he has ever had to pay, if his information is correct.

Elon Musk: US tax law as a loophole for the super-rich

In view of the fact that Elon Musk has paid hardly any income tax, in some cases even no income tax, the amount will be manageable in 2021.

reported that America's billionaires are using a clever strategy to avoid paying taxes. Because there is no US income tax on stocks and property. So in the case of Musk, that's mega-business. After all, the value of Tesla shares * has risen almost incessantly over the past few years.

But why does Musk have to pay so much to the US Treasury this year?

That's because he sold some of his Tesla stock.

In November, the multi-billionaire started a survey on his favorite platform, Twitter, and let his followers decide whether to sell ten percent of his Tesla shares.

57.9 percent voted for it and so Musk parted with shares *.

Elon Musk: Tesla boss is paid in shares

But taxes are now due for this.

Musk also added under his poll tweet.

“Notice that I don't get any cash or bonus anywhere.

I only have stocks and the only way I can personally pay tax is to sell stocks. "

In fact, the Tesla boss does not receive a direct salary.

He is only paid in stock options.

If Tesla hits targets, Musk will be allowed to buy a certain number of shares that have been priced earlier.

For Musk, that's probably the perfect solution, because the value of Tesla shares has risen by around 20,000 percent over the years.

For comparison: when the company went public in June 2010, the value of a Tesla share * was around 15 euros.

Currently (December 21) the price is 815.90 euros.