image via CNBC
Tesla CEO Elon Musk continues to fight with state and local governments in California. He recently made the decision to reopen Tesla’s facility in Fremont, California in spite of local regulations. Prior to the decision, Musk tweeted some drastic remarks regarding the company’s place within California. At one point, the prolific “business magnet” even threatened to move Tesla production out of California and into Texas or Nevada. In a new video from CNBC, analysts take a closer look at the financial side of such a move.
As the video states, Musk’s decision to move to Texas or Nevada would net some enormous income tax savings for the CEO. In both states, Musk can expect to pay no income tax. Because Musk receives no salary or bonus pay, he’s required to fulfill incentives with Tesla in order to receive pay. When incentives are met, Musk receives pay in the form of stock options. With a recent and significant stock compensation payment on the table, Musk would owe California over $100 million USD in income tax.
Over the life of the stock offerings, Musk stands to earn $55 billion USD. In California, the income tax on this amount totals around $7 billion USD.
