Elon Musk already faces a federal tax invoice topping $3.5 billion on exercising Tesla Inc. inventory choices. It might have been greater if the corporate’s share worth hadn’t fallen after he tweeted about promoting inventory.
The inventory fluctuations have monetary penalties for the U.S. authorities, Mr. Musk and Tesla. When the share worth goes down, it not solely reduces how a lot tax the Tesla chief govt owes the U.S. authorities within the brief time period, it additionally lowers his whole potential tax funds linked to these shares if he sells them sooner or later. Any such later gross sales additionally might not be taxed by California as a result of Mr. Musk moved his residence to Texas final 12 months.
