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Musk scorned “shady” loopholes, yet offshore tax tricks likely saved Tesla hundreds of millions
Reuters review found the automaker likely cut its U.S. tax bill by more than $400 million through a profit-shifting structure.
- A Reuters review found Tesla units in the Netherlands and Singapore booked roughly $18 billion in untaxed profits between 2023 and early 2025, likely reducing the company's U.S. tax bill by more than $400 million through profit shifting.
- Tesla allegedly shifted profits by granting foreign subsidiaries intellectual property rights through a "cost-sharing arrangement" disclosed in its 2015 report, a tactic Elon Musk, CEO, previously scorned as "shady" while campaigning with President Donald Trump.
- Three prominent tax experts, including former Treasury Department official Stephen Shay, validated Reuters' analysis as realistic; the pattern mirrors Internal Revenue Service disputes with Microsoft over a $28 billion tax claim related to profit shifting.
- Tesla's January 10-K report disclosed that over 90% of 2025 global profits were earned in the United States, a dramatic shift from the prior five years when the U.S. accounted for just 27% of profits, suggesting a potential restructuring.
- Across the past 20 years, Tesla reported $264 billion in U.S. revenues but declared owing no federal taxes in all but one year, with foreign tax liabilities of $6.4 billion—more than 130 times its sole U.S. tax estimate of $48 million in 2023.
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Musk scorned "shady" loopholes, yet offshore tax tricks likely saved Tesla hundreds of millions
When Tesla released its annual report for U.S. regulators in January, the Texas-based automaker, led by the world's richest man, reported a federal tax bill of zero dollars for 2025. ...
·Annecy, France
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Musk scorned “shady” loopholes, yet offshore tax tricks likely saved Tesla hundreds of millions
When Tesla released its annual report for U.S. regulators in January, the Texas-based automaker, led by the world’s richest man, reported a federal tax bill of zero dollars for 2025.
·New York, United States
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Elon Musk scorned "shady" loopholes, yet offshore tax tricks likely saved Tesla hundreds of millions
Tesla has reportedly saved over 400 million dollars on US taxes. This was achieved through a financial maneuver involving its units in the Netherlands and Singapore. These units posted 18 billion dollars in profits that were not taxed in those countries. This practice allowed Tesla to reduce its tax bill in the United States.
·Mumbai, India
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Total News Sources6
Leaning Left0Leaning Right0Center5Last UpdatedBias Distribution100% Center
Bias Distribution
- 100% of the sources are Center
100% Center
C 100%
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