Tesla’s new site could save Musk hundreds of millions of dollars in taxes

Tesla CEO Elon Musk said Monday that he will restart production at his Flemont, California, plant, despite getting permission from the local government. Musk also said that if someone needs to be arrested for this, then that person is himself. Tesla said employees had returned to their jobs on Sunday. The company also said the start was in line with the California government’s order Thursday to allow manufacturing to restart operations.

Author: Money Child Heart

Tesla's new site could save Musk hundreds of millions of dollars in taxes

Forced return to work will be punished with a fine and imprisonment

Health officials in Alameda County, where Tesla’s Fremont plant is located, said Monday that they are aware that Tesla’s resumption of work has exceeded the smallest number of operations allowed during the blockade and has informed Tesla that it will not resume work without the permission of the county government.

In a statement released Monday by the Alameda County Government, officials said they expect Tesla to come up with a plan later Monday and said they expect Tesla to comply with local laws and avoid further mandatory re-entry measures. The Alameda county government did not comment further on the statement, but made it clear in the county executive order that companies would be subject to fines, imprisonment and other penalties if they violated the rules.

Tesla filed a lawsuit Saturday in Alameda County, California, over complaints that the local government would not grant a re-wage grid at its Fremont plant. Tesla argued that the county government’s actions were contrary to the state’s order and appealed to the Fourteenth Amendment, which deals with civil rights and equal legal protection.

Tesla also said it would move its headquarters to Texas or Nevada, where it plans for the future. “If we keep the manufacturing base at the Fremont plant, it will be entirely up to Tesla to be treated in the future.” Musk wrote on Twitter on Saturday.

Judging by the confrontation between Musk and the Alameda government, Musk has clearly gained the upper hand. He also has the support of Steven Mnuchin, the TREASURY secretary. Mnuchin said the California government should do everything it can to support the return of auto companies. Mike Jackson, chairman of AutoNation, America’s largest dealership, also expressed support for Mr Musk.

“I know not only Tesla well, but also its founders for many years,” said Gavin Newsom, California’s governor. I have great respect for Tesla’s technology and its innovative spirit and leadership. However, Newsom said he had no knowledge of Tesla’s return.

“From the alamed d’or county government’s attitude, there has been a softening,” Zhang Jun, a u.S. Supreme Court barrister, said in a telephone interview with First Financial In Los Angeles. I think the chances of the government arresting Musk are slim, a compromise is more likely, and Tesla needs to make a bigger commitment to return to work, such as more tougher measures. “

Up to $7 billion in tax savings

Mr. Zhang also told First Financial that Tesla’s return to work also reflects a mixed attitude between the two parties to restart the economy. The Trump administration, which is representing U.S. Treasury Secretary Mnuchin, has called for a restart of the economy, after all, tesla’s California plant has tens of thousands of employees, but that’s at odds with the Democratic Party’s position that it wants to control the outbreak first. Zhang Jun’s lawyer said.

Mr. Zhang told First Financial that despite the heavy burden on California companies, Silicon Valley’s science and technology environment still has a unique advantage for Tesla. “I don’t think Musk is really going to pull out of California, and there’s a lot of advantages to relying on Silicon Valley.” If other states don’t adequately subsidize Tesla, Tesla won’t consider it. Zhang Jun’s lawyer said.

Officials in Texas, Georgia, Utah, Oklahoma and Nevada have all approached Musk to encourage him to reconsider Tesla’s location. The Texas government also said it could immediately help Tesla move.

On the other hand, as Tesla’s market value soars, Musk’s personal value soars. California’s taxes are among the highest in all U.S. states, and if Musk moves out of the state, it could save him hundreds of millions of dollars in taxes, such as zero in Texas and Nevada.

It is not known whether personal taxes will be a consideration for Musk’s re-location of Tesla. If Tesla achieves its profit target, Musk will receive a compensation package totalling more than $55 billion, with the first prizes likely to be as high as $780 million, according to Tesla’s filings.

Musk will need to pay the personal income tax rate if he withdraws the reward. In California, the tax rate would top 13.3 percent, meaning Musk would have to pay more than $100 million in taxes. That would save Musk more than $7 billion in taxes on $55 billion in revenue.

Tesla’s share price has surged 240 percent in the past year, nearly doubling so far this year, and tesla’s market value is more than $150 billion. Tesla’s China plant delivered 3,635 electric cars in April, down 64% from March, according to the latest data from the China Automobile Association. In March, Tesla’s China plant delivered more than 10,000 electric cars.