Friday , February 26 2021

Musk plans to move to Texas, where there are no taxes …



Several friends and like-mindeds of billionaire Elona Muska have reported that Tesla’s CEO plans to move to Texas, given that he sold his home for sale in California this year during the period he entered. conflict with public authorities over restrictions related to Covid-19.

Meanwhile, Musk is expanding his Texas business and maintaining good ties with Republican Governor Greg Abbot, News.ro reports.

Musk, the second richest man in the world after Jeff Bezos, is already frequent in Texas. He spends most of his time between Austin, where Tesla and its Boring Company operate, and the coastal village of Boca Chica, home to the SpaceX unit.

SpaceX was launched in Texas in 2003.

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Musk often photos and videos of the Twitter and SpaceX testing and launch center, known as the Starship Production Complex.

In California, whose super-rich are often criticized for high taxes and strict regulations, during the pandemic, the technology industry ran out of big names as companies tried to cut costs and prepare for the future of split work.

Musk was among the strongest critics this year, comparing the state to the league’s sports team, which became satisfied and created “a problem because it has won for too long”.

In May, while California companies were forced to remain closed due to the pandemic, Musk wrote on Twitter that he was relocating Tesla’s headquarters and further development from California to Texas and Nevada.

Leaving California, the country with the highest income tax in Texas, a non-taxable state, could save Musku billions of dollars based on his 2018 compensation package.

Musk has received 101.3 million options (adjusted for a 5 to 1 share split this year) that are being used over time as the company reaches certain benchmarks, including market capitalization.

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Tesla shares have risen 782% over the past year. In October, Musk had won prizes worth about $ 20 billion before taxes, based on Thursday’s deal, which is part of the total potential.

Musk claims to sell all his “physical goods” and wrote on Twitter in May that “he will not own any house”. Shortly afterwards, Musks put up for sale several homes in California.

The CNBC has not been able to find any public records that indicate that it has officially changed residence, and the main address of the White Pages online database is still Los Angeles.

Even people who know him well and know his general plans to move to Texas say that they do not know exactly where he is when he is there and that he is trying to keep this information private.

It seems that the country’s top official, Governor Abbot, is confident that Musk will take this step.

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In July, Abbots told CNBC’s Squawk Box that Musk told him he had a Texas driver’s license and that he was now a “bona fide Texas.”

Abbott also said Musk was building his next Tesla plant in Texas because it would give him the freedom to “expand the way he wants to expand.”

When contacted on the subject, an Abbott spokesman declined to comment on Muska’s plans. To help attract the new Tesla plant, local officials have granted the company tens of millions of dollars in property tax exemptions.

Musk confirmed in a second-quarter financial report published in July that the plant will occupy approximately 2,000 hectares 15 minutes from the city center and will be used to build Cybertruck, Semi, Model 3 and Model Y vehicles.

The billionaire said the factory will start delivering cars next year. In addition to SpaceX and Tesla, Boring Company has an office in Texas. Seven of the 17 jobs the company offers on its website are in Austin, and Musks has proposed building a tunnel there.

The boring investor Joe Lonsdale, co-founder of Palantir and a friend of Muska, recently moved to the Austin area of ​​Silicon Valley.

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Meanwhile, Tesla is still headquartered in Palo Alto, California, and the company continues to build cars in nearby Fremont. SpaceX is headquartered in Los Angeles County.

Muska’s personal financial motivation to leave California is significant. Under the 10-year compensation package approved in 2018, Musks could win more than $ 50 billion in shares and prizes in 12 tranches, reaching fourth.

Using the options, Musk would have to pay income taxes. California’s highest income tax rate is 13.3%. In Texas, it’s zero.

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Musk began collecting awards after the company reached a market capitalization of $ 100 billion, as well as adjusted revenue or revenue-specific values. Each $ 50 billion increase in market capitalization to a total market value of $ 650 billion will generate another reward if the revenue or profitability target is met.

The company is already worth more than $ 550 billion, well below $ 100 billion since the beginning of the year. The second and third tranches were launched in the third quarter, and the fourth was completed in October, the company said in its latest quarterly report.

That’s about 33.8 million out of 101.3 million shares. For the package to remain intact, Musk must remain either the CEO or the CEO and Product Manager. Musk, Tesla and SpaceX did not respond immediately to requests for comments.


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