The construction site of theTesla Gigafactory is being stood on by the CEO of the company. September 3, 2020 is in Grnheide.
This year's tax bill is possibly the biggest in U.S. history.
I will pay over $11 billion in taxes this year, said the CEO on Monday.
CNBC estimated that Musk would pay a total of $12 billion in taxes in 2021.
After asking his followers in a poll if he should sell 10% of his holdings, Musk has sold off 14 billion worth of stock. The answer to that poll was a resounding yes.
It is likely that Musk would have begun selling anyway. He faces a huge tax bill on stock options.
August next year is when the stock options Musk was awarded in 2012 are set to expire. He has to pay income tax on the gain in order to exercise them.
Musk's wealth comes from stock awards and gains in the company's share price.
The stock is up 28% year-to-date, despite the fact that shares have taken a tumble.
Musk can use his company's stock as a security when he wants cash. This practice has been criticized as a tax loophole for the rich.
An investigation by ProPublica showed that Musk and other billionaires paid no federal income taxes in the year.
Despite his wealth growing by $13.9 billion, Musk paid over $450 million in taxes over the course of two years.
According to Forbes, Musk is the world's richest man.
If Musk waited until next year to pay the tax bill, he would have been hit with higher tax rates under the Democrats' bill.
The CEO of both companies has been fighting with Democrats on the issue of tax avoidance.
He said that he would pay more taxes than any American in history this year, after Elizabeth Warren questioned Time Magazine's decision to name Musk its Person of the Year.
There is a chance that Musk may be right about paying the huge sum he said he would.
