Elon Musk has announced he will be paying $11 billion as taxes, one of the US biggest personal payments in history. Musk and other billionaires in the United States have been under scrutiny for the percentage of taxes they pay yearly. According to CNBC, this is “the single largest tax bill ever.”
As CEO of Tesla, Musk doesn’t earn any monthly or yearly incentive as cash. Instead, he is paid in shares, and according to CNBC if he wants cash he uses his stocks as collateral.
Intelligently, it is not mandatory for him to pay taxes, since he doesn’t earn cash. Although recently he conducted a Twitter poll asking followers if he should sell his Tesla stocks to buy taxes. He mentioned that whatever the results of the poll, he will do accordingly.
Shockingly, his followers voted that he sell his stocks which he is currently in the process of doing. And since he now has cash, he has to pay taxes on the proceeds of those stocks sold.
That means Musk will pay 50% value of the stocks he sold as capital gains tax. Just before that Ron Wyden has earlier proposed a “Billionaires Income Tax”, questioning Musk Twitter poll about taxes. Musk awkwardly reply to the senator is a funny and head cracking tweet.
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CEO Elon Musk has told his Employees at Tesla that they should focus more on cost reduction than hasty quarterly deliveries. Tesla on its previous two quarterly reports has been increasing their vehicle deliveries, meaning employees have been pushing more cars out. Its 2021 second quarter’s made a whopping $1.1 Billion in profit and $11.9 billion in total revenue.
Elon Musk
The electric car company has already delivered over 620,000 in over 3 quarters of 2021, while it only delivered 500,000 vehicles in the whole of the 2020 financial year. Since Tesla is hitting a maturity stage, it makes sense to focus more on cost reduction.
Earth’s richest man had zero cash in the beginning and will sell 10% of his Tesla stock, and still be among the wealthiest in cash. Despite paying the highest tax ever for an individual in the United States, he would still be maintaining his wealthy position.
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