Tesla and SpaceX CEO Elon Musk is planning to move from California to Texas, a move that would potentially save him from a huge personal income tax bill, CNBC reported.
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, over the objections of some local residents. 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.
Earlier this year, Musk tweeted that he was “selling almost all physical possessions. Will own no house.”
Musk battled with officials in California in recent months over pandemic lockdown orders that temporarily shuttered Tesla’s Fremont plant. In May, Musk said he was going to move the automaker out of state.
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, as CNBC notes. 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. Texas, however, has no personal income tax.