Tesla and Space X CEO Elon Musk is reportedly making plans to move out of California. According to a CNBC report, this move will help the billionaire reduce his tax burden.
Musk is currently the second richest man in the world. He deposed long-time second-richest Bill Gate to secure the position.
Interestingly, Techuncode saw it coming and predicted that it wouldn’t take long before it happened.
Techuncode’s also making projections on the feasibility of Musk deposing Jeff Bezos in the same order.
Hopefully, the research will be completed soon and would get it to our teeming readers before the end of the year.
This online platform first got a hint that Musk might be leaving California in May this year.
At the time, he announced that he was selling his physical properties. After his announcement, he proceeded to list all his California properties on the market.
Musk appeared to be disgruntled with state lawmakers’ restriction orders amidst the spread of the COVID 19.
He complained that the restrictions harshly affected operations at Tesla’s Fremont plant. In a bitter Tweet, Musk revealed that he’d had enough of the ill-treatment given to his company in the State.
He announced that Tesla’s Head Quarter and future programs were moving to Texas/Nevada with immediate effect.
The billionaire threatened to withdraw operations at the Fremont plant in California as well.
According to him, the only condition under which Fremont operations will continue is if the State showed an attitude adjustment.
Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependen on how Tesla is treated in the future. Tesla is the last carmaker left in CA.
— Elon Musk (@elonmusk) May 9, 2020
Moving to Texas
Elon Musk already traffics the city frequently, so he wouldn’t need to make too many adjustments.
He spends plenty of time in Austin, Texas. This is where Tesla and his tunnel-building Boring Company have their base. He also traffics Boca Chica, where he set up a Space X facility.
Space X started operations in Texas in 2003. This gives us an idea of how well Musk would understand the state’s procedures.
Musk also announced earlier this year that he was setting up his next US factory in Austin.
The company aims at producing its Cyber truck, Model Y, Model 3, and Semi vehicles from the new factory.
From 2021, the company would begin to release cars from here.
Musk wouldn’t be the only one to leave California for tax reasons
California is quite infamous among the wealthy for its imposition of ridiculously high taxes.
The state is also well-known for upholding rigid regulations.
Due to these concerns, many famous tech names have exited the city during the pandemic as they seek to reduce cost and prepare for another business year.
For Musk, leaving California – where income tax is 13.3% – for Texas – where there is no state income tax – could mean saving a fortune.
Maintaining minimal tax became imperative for Musk since he received a compensation package in 2018.
The package gives him access to tranches of stock options. But this access is dependent on his ability to achieve certain milestones.
According to a review, he could bag a total of $55billion in due course if the company meets its target.
In other news, Tesla’s stock price has risen remarkably this year.
The company stock has increased by 782% this year. According to recent reports, Musk had earned awards amounting to $20billion pre-tax.
Seems like he’s going into stealth mode
Elon Musk seems to be in stealth mode, only showing up when he wants to be seen.
It’s hard to pin a location where the business magnate resides. He claims to be selling all his properties and has also said that he would own no house.
However, we’ve been unable to find any documentation that can serve as proof of a location change.
His whereabouts are unknown to even his close acquaintances. According to them, he’s trying to keep that bit a secret.
Only one man seems to know a bit about his location. In July, Republican Gov. Greg Abbott made certain statements about Musk’s movement.
He said that Musk told him that he had retrieved his Texas driver’s license.
He also added that he’d site the new Tesla factory within the city. This, according to Abbott, will give Musk the room to expand as he’d always wanted.
Stuck between acceptance and rejection
Musk has received massive support from several individuals for the building of the new Tesla Factory.
He received over tens of millions of dollars in property tax breaks from local officials. However, some local residents are stiffly objecting.
Their concerns are primarily hinged on Musk’s casual lack of concern towards critical issues.
Some local citizens cited the instance when he flouted COVID-19 restriction rules and opened the California factory.
Many others were chiefly concerned about the fact that he spread some misinformation about the virus. It is easy to understand why citizens will second guess this move.
Elon Musk is quite influential. Hence, you’d want to make sure that someone like him can positively influence the people around him.
But, when there are traces of irrational actions taken by such a person, you might want to keep them as far from your community as possible or create a way to control their actions.
But, on the brighter side, there’s a lot more to gain from Musk’s move to Texas than to worry about.
The Boring Company
Musk’s Boring Company has an office in Texas. Out of 17 job openings on the company’s website, seven are for Austin-based positions.
Interestingly, Musk has also hinted at building a tunnel in Austin, Texas. One of the company’s investors and a friend to Elon Musk – Joe Lonsdale recently relocated from Silicon Valley to Austin.
Presently, Tesla still has its headquarters in Palo Alto, California.
The company still builds cars in nearby Fremont. But judging from Elon Musk’s threat, we might get to see him make that move sooner than later.
What do you think about Musk moving to Texas? We’re curious to know. Drop your thoughts in the comment section below.