Elon Musk, the world’s richest person and founder of Tesla Inc, said he will pay more than $11 billion in taxes this year. This amount could be a record payment to the IRS.
Billionaire Musk is expected to face a tax bill of more than $10 billion in 2021 if his stock options expire and he exercises them all.
For those wondering, I will pay over $11 billion in taxes this year— Elon Musk (@elonmusk) December 20, 2021
The increase in the number of shares sold is part of Musk’s reorganization to cover the taxes related to his recent options activity. The unexpected move comes after Tesla recently raised $1.7 billion from selling new shares in a capital raise, which happened on November 7th. Many people think Tesla is going to be worth a lot of money in the future and, recently, Elon Musk asked Twitter followers whether he should sell some shares. His decision ultimately came down to voting. The outcome was a huge surge in Tesla’s share price after the announcement that 10% of his company was being sold.
It was recently revealed that Elon Musk used a popular tax evasion scheme to pay little income tax relative to his outsize wealth. But Elon Musk is adamant that he doesn’t draw a salary from either SpaceX or Tesla, and pays an effective tax rate of 53% on stock options he exercises. He said that his expected tax rate next year will also increase.
Elon Musk made a lot of headlines earlier this month due to his Twitter tirade. In response, he said that he would pay more taxes than most Americans have ever paid in their entire lives.
Let’s change the rigged tax code so The Person of the Year will actually pay taxes and stop freeloading off everyone else. https://t.co/jqQxL9Run6— Elizabeth Warren (@SenWarren) December 13, 2021