Elon Musk ‘could save BILLIONS of dollars in taxes if he moves from California to Nevada or Texas’
Elon Musk is looking to shift Tesla’s Head Quarters from California to Nevada or Texas. He conveyed the message through his tweet, where he threatens Alameda County and the California government.
He is keen on reopening the Factory of Tesla despite the number of coronavirus cases rising exponentially. Since the government is not allowing him to open the factory, a threatening tweet came at the fore to tackle the situation.
Tax Accountants believe that Elon Musk will be able to save the taxes in billions if he shifts his Head Quarters to Texas or Nevada.
For now, he is engaged in the battle with California and Almeda County to reopen his factory, but the government is not allowing to do so.
Texas and Nevada are deprived of taxes and whereas California has the highest income tax rate. This could be a game-changer for Elon Musk if he shifts his factory to Texas or Nevada. Billions of money would be saved, and profit for his company will have an increase significantly.
How Elon Musk could save billions by moving Tesla HQ out of California
Elon Musk mentioned in his tweet that he would be shifting his future programs and Head Quarters to Texas or Nevada this weekend only. If he is not allowed to reopen the factory, then he will move out of the city, and there will be a car-making factory left in California.
If we talk about the numbers, then California takes 13.3% Income Tax from the Highest Earners in the city.
According to the reports, the estimated worth of Tesla firm is around $55 Billion, which means he has to pay approximately $7 Billion as taxes. Now, if he moves Tesla’s headquarters, then strategically, he would be saving around $7 Billion per Year, which is a tremendous amount of money.