- Elon Musk claimed last week he will “pay more taxes than any American in history this year.”
- He has been exercising a large number of Tesla share options this year and must pay tax on them.
- The Tesla CEO is the world’s richest man with a net worth of $243 billion, according to the Bloomberg Billionaires Index.
Tesla CEO Elon Musk says his tax bill will be over $11 billion this year.
The information came amid speculation over how much he will be paying following his spat with Elizabeth Warren over how much he pays in taxes.
—Elon Musk (@elonmusk) December 20, 2021
Insider’s Jason Lalljee and Andy Kiersz reported last week that Musk could owe about $12 billion in taxes this year. This is based on taxes on Musk’s Tesla stock, nearly a billion in Net Investment Income Tax, and what he likely owes the state of California in state tax.
Last week, Musk claimed that he will “pay more taxes than any American in history this year” in response to Elizabeth Warren’s tweet that he was “freeloading off everyone else.”
—Elizabeth Warren (@SenWarren) December 13, 2021
Musk has exercised a large number of Tesla share options this year and must pay tax on the difference between the exercise price and fair market value of the shares — which are up about 30% year-to-date. He has in turn sold large chunks of Tesla shares to meet the tax obligation.
The billionaire’s massive tax bill this year comes after years of legally paying very little compared to his wealth. A ProPublica investigation published in June found that he paid $455 million in taxes in total from 2014 to 2018 even though his wealth grew by $13.9 billion. He also paid no federal income taxes in 2018.
Musk is currently the world’s richest man with a net worth of $243 billion, according to the Bloomberg Billionaires Index.
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