Musk is known for brands and projects like Tesla cars and Space X.
Photo: Bloomberg Agency
Elon Musk, the richest person in the world and CEO of Tesla Inc., said in Twitter It will pay more than $ 11 billion in taxes this year, an amount that could constitute a record payment to the US Internal Revenue Service.
The billionaire may face a tax bill of more than $ 10 billion by 2021 if he exercises all of his options that expire next year, last week’s calculations from Bloomberg News showed.
Also read: Elon Musk was named personality of the year by Time magazine
The unusually high tax comes after Musk exercised nearly 15 million options and sold millions of shares to cover taxes related to those transactions. That was after a Twitter poll last month when it asked its followers whether it should sell 10% of its stake in the electric carmaker, whose shares have soared more than 2,300% in the past five years.
From the unusual move of asking Twitter users about the plan, Tesla it has dropped by nearly a quarter and the company’s market value has slipped below the $ 1 trillion mark to $ 937 billion. The shares fell 2.7% in pre-market trading on Monday compared to Friday’s close in New York.
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A ProPublica report in June said Musk paid little income tax relative to his enormous wealth. But he has rejected that characterization, saying that he does not receive a salary or SpaceX ni de Tesla, and you pay an effective tax rate of 53% on the stock options you exercise. He added that he expects the tax rate to increase next year.
Musk said earlier this month that he will pay more taxes than any American in history this year. That was in response to another tweet from Massachusetts Sen. Elizabeth Warren, who used Musk’s Time magazine “Person of the Year” award to call him about his taxes.
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Elon Musk: what the world’s richest man will pay in taxes in 2021