Elon Musk, the billionaire CEO of Tesla and SpaceX, has stated that he expects to pay more than $11 billion in taxes this year. Musk tweeted the figure on Sunday but didn’t go into any further explanation about his accounting.
Musk tweeted, “For those wondering, I will pay over $11 billion in taxes this year”.
According to the Bloomberg Billionaires Index, Musk has a net worth of $243 billion. Instead of receiving a salary, he gets compensated with Tesla stock awards. According to CNBC, he will owe $12 billion in taxes in 2021.
In November, the billionaire sold nearly 2 million shares of Tesla stock after asking his Twitter followers if he should sell stock to pay his taxes. Approximately 58 percent of the 3.5 million individuals who took part in the poll said he should sell 10% of his stock in the electric vehicle company.
Musk and other tech CEOs have been chastised for the amount of taxes they pay each year. In June, the investigative website ProPublica reported that Musk and others had amassed fortunes in the billions of dollars despite paying little federal taxes. This is attributed to the way they structure their earnings. According to ProPublica, the conduct was legal. Still, tax documents show how the ultra-rich reduce their taxes by taking out loans or using their stock holdings as collateral.
Last week, both Tesla and SpaceX received poor press. Both of Musk’s firms have been accused of sexual harassment. Six women have accused Tesla of “rampant” sexual harassment at its Fremont, California factory. At the same time, a former SpaceX engineer claims the firm creates a misogynistic and abusive atmosphere.