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originally posted by: peaceinoutz
I thought Space X was doing great. They beat Bezos like a drum on NASA contracts. Maybe he should have done the millionaire and billionaire and celebrity 10-minute space ride too.
As Tesla noted in its third-quarter Securities and Exchange Commission 10-Q filing this year: "If the price of our common stock were to decline substantially, Mr. Musk may be forced by one or more of the banking institutions to sell shares of Tesla common stock to satisfy his loan obligations if he could not do so through other means. Any such sales could cause the price of our common stock to decline further."
The options expire in August of next year. Yet in order to exercise them, Musk has to pay the income tax on the gain. Since the options are taxed as an employee benefit or compensation, they will be taxed at top ordinary-income levels, or 37% plus the 3.8% net investment tax. He will also have to pay the 13.3% top tax rate in California since the options were granted and mostly earned while he was a California tax resident.
Combined, the state and federal tax rate will be 54.1%. So the total tax bill on his options, at the current price, would be $15 billion.
originally posted by: peaceinoutz
a reply to: AndyFromMichigan
He’s certainly a flaky guy. …And he has 300 billion dollars stock wealth. Strange he’s complaining.
Of course, on another level, maybe he knows something we ordinary folks don't know.
originally posted by: AndyFromMichigan
... Musk as always appears to be immune to such things.
Musk and Tesla have agreed to settle the charges against them without admitting or denying the SEC’s allegations. Among other relief, the settlements require that:
• Musk will step down as Tesla’s Chairman and be replaced by an independent Chairman. Musk will be ineligible to be re-elected Chairman for three years;
• Tesla will appoint a total of two new independent directors to its board;
• Tesla will establish a new committee of independent directors and put in place additional controls and procedures to oversee Musk’s communications;
• Musk and Tesla will each pay a separate $20 million penalty. The $40 million in penalties will be distributed to harmed investors under a court-approved process.