Elon Musk could move to Texas and save himself $9 billion in the process

Moving house can be a pain, but when it can save you billions more than most people will ever see it’s not that hard a decision.

The world’s second richest man is reportedly considering packing up and moving to a different state where he won’t pay as much tax.

Tesla and SpaceX founder Elon Musk has already threatened to move the electric vehicle company out of California, where he said it’s the only remaining carmaker, after growing frustration with coronavirus lockdowns.

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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

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Now he’s considering moving himself out of California too, according to CNBC who cited “close friends and associates” of the multi-billionaire.

The old saying that everything is bigger in Texas doesn’t apply to taxes.

Texas has no state income tax while California is the highest in the country at 13.3 per cent.

In 2018 Tesla’s board approved a deal that could net Mr Musk more than $US50 billion ($A67.3 billion).

At California’s tax rate he’d be facing a total tax bill of almost $A9 billion if he meets the performance targets that unlock his bonuses.

The state is also considering “super taxes” on high-income earners which Mr Musk would likely qualify for.

Tesla and Mr Musk’s other, other company The Boring Company both have operations in Austin, Texas.

SpaceX has an expanding facility in Boca Chica in the state’s south.

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SN 5 & 6 at Starship Production Complex in Texas pic.twitter.com/8BVRD5VdU7

— Elon Musk (@elonmusk) August 11, 2020

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Earlier this year Mr Musk revealed he was selling all of his California properties as part of his quest to not own a home.

He has partially made good on the promise after offloading a number of properties and listing several more.

Tesla is headquartered in Palo Alto and has a factory at Fremont, east of San Francisco … for now.

Originally published as Elon Musk could move to Texas and save himself $9 billion in the process