Tesla chief executive Elon Musk put his California homes on the market this year while arguing with state attorneys over the Covid-19 restrictions. At the same time he has been expanding jobs in Texas and including Republican government leader Greg Abbott.
Elon’s Close Friends & Relatives
Now, his close friends and colleagues say Musk has told them he plans to move to Lone Star State. People familiar with his plans have asked not to be named because their conversations were conducted in private.
Musk, the richest man in the world after Jeff Bezos of the Amazon, has been to Texas many times already. He spends most of his time in Austin, where Tesla and its Boring Company start-up tunnel operate, and a coastal village called Boca Chica, home of the SpaceX center. SpaceX started operating in Texas in 2003.
You only need to follow Musk on Twitter to see his presence in the province, as he used to post photos and videos from the SpaceX testing and launch platform known as the Starship Production Complex.
Taxation In California & Texas
California, which is often overlooked by the richest in terms of its high tax rates and stricter laws, has seen the emergence of technical terms during the epidemic as companies look to cut costs and prepare for the future of distributed labor.
Musk has been one of the most influential critics of this year, comparing the state to a competitive sports team that has been indifferent and has created a “problem of winning too long.”
In May, as businesses across California were forced to remain closed due to the epidemic, Musk wrote on Twitter that he was moving Tesla’s headquarters and future development from California to Texas and Nevada.
Leaving California, with the highest income tax in the country, and Texas, with no state income tax, could save Musk billions of dollars based on his 2018 compensation package. Musk was given 101.3 million options (adjusted after the 5-for-1 stock split this year) which provides over time as the company hits certain categories, including market numbers.
Tesla’s stock has risen 782% last year. As of October, Musk had received prizes worth nearly $ 20 billion in taxes, based on Thursday’s closure, part of the potential revenue.
Elon Said ‘He Won’t Own A House’
Writing down Musk’s whereabouts at any time is challenging because he says he sells all “material things” and sent a message in May saying “he won’t have a house.” Shortly thereafter, he put up several of his apartments in California for sale. CNBC has not been able to find any public records suggesting it has officially changed its location, and the White Pages online database is still listing its main address such as Los Angeles.
Even people who know him well and are not aware of his usual plans to move to Texas say that they do not know exactly where he lives and that he is trying to keep that information confidential.
The state legislature, Gov. Abbott, certainly seems to think that Musk is taking this step.
In July, Abbott told CNBC’s “Squawk Box” that Musk told him he would get a driver’s license in Texas and that he was “see the Texan fide now.” Abbott also said Musk was building his next Tesla factory in the province because it would give him the freedom to “expand the way he wants to grow it.” When contacted, Abbott’s spokesman declined to comment further on Musk’s plans.
To help attract Tesla’s new factory, local officials have given the company tens of millions of dollars in property taxes. Musk confirmed a call to the company’s second quarter in July that the plant would take about 2,000 hectares 15 minutes from the city center, and would be used to build Cybertruck, its Semi, Model 3 and Model Y. Musk said the factory would start importing cars next year.
In addition to SpaceX and Tesla, Musk’s Boring Company has an office in Texas. Seven of the company’s 17 new jobs recently featured on its website are in Austin, with Musk pointing to building a tunnel there. Boring Company investor Joe Lonsdale, founder of Palantir and a friend of Musk’s, recently moved to the Austin area from Silicon Valley.
At present, Tesla’s headquarters are in Palo Alto, California, and the company is continuing to build cars in nearby Fremont. SpaceX’s main address is in Los Angeles County at 1 Rocket Road in Hawthorne.
But Musk’s personal financial reasons for leaving California are significant. Under a 10-year compensation package approved in 2018, Musk could earn more than $ 50 billion in stock and prizes on 12 tracks – he has reached the fourth. He will have to pay income tax on profits when using the options. The highest income tax rate in California is 13.3%. In Texas, zero.
Musk’s awards started kicking off after the company reached $ 100 billion in market capitalization and some metrics for profits or profits. Each $ 50 billion increase in market pattern, up to $ 650 billion in total market value, results in additional payments if the profit or profit target is met. The company is already costing more than $ 550 billion, after starting the year below $ 100 billion.
During the third quarter, the second and third installments were released, and the fourth was received in October, the company said in its quarterly annual report. That equates to about $ 33.8 million in 101.3 million shares. For the package to remain in place, Musk must remain the CEO or chief executive and chief product manager.
Musk and Tesla and SpaceX spokespersons did not immediately respond to requests for comment.
Musk said in May he sold all his homes and then proceeded to list his California locations. Friends and acquaintances told them he was moving, even though there was no history of change of residence at the moment.
Elon Musk’s payment package from 2018 means you are getting bigger stock rewards according to Tesla’s rising market rate and fiscal monetary policy.
Texas has no state income tax, while California is the highest in the country.