Visual: Singdhi Sokpo
This year, me (Jacob) and Elon Musk will be paying a combined $11B+ in taxes.
Musk has a net worth of ~$243B, nearly all of it tied up in ownership of Tesla and SpaceX.
The reasoning for the hefty bill is as follows:
- Musk is paid through stock options, which give him the right to buy Tesla shares at the price on the date of issue (in this case, back in 2012).
- These options are set to expire next August, so Musk has started exercising them — at a tax rate of 40.8%.
- Musk will also pay long-term 20% capital gains tax on other stock sales.
All told, it’s gonna be one hefty payment.