Tesla and SpaceX CEO Elon Musk plans to move from California to Texas, a move that has the potential to save him from a high personal income tax bill, CNBC reports.
Musk announced in July that Tesla was building its next US plant in Austin, where it would manufacture Cybertruck, Model Y, Model 3, and Semi vehicles. The company received tens of millions of dollars in local property tax breaks for building the plant on 2,100 acres east of Austin airport, to objections from some residents. The plant expected to start shipping its first vehicles in 2021. Musk’s Boring Company already has operations in Austin, and SpaceX has facilities in Boca Chica, Texas.
Earlier this year, Musk tweeted that he was “selling almost all physical possessions. Will own no house.”
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Musk has been arguing with officials in California in recent months over a pandemic lockdown order that temporarily closes the Fremont Tesla plant. In May, Musk said he would move the automaker out of the state.
In November, Tesla said employees at the Fremont plant were “essential workers” and were exempt from a COVID-19 health order across the state of California.
If Elon Musk changes his permanent address to Texas, he will pay far less in taxes, as CNBC notes. Musk stands to make more than $50 billion in stock options and will have to pay income tax on profits when he uses it if he stays in California. However, Texas does not have personal income taxes.