Elon Musk Could Pay Largest US Tax Bill If He Sells Tesla Stock

Elon Musk could make history once again if he chooses to sell his Tesla stock, which could bring his tax bill to an estimated $12 billion in 2021.

On Sunday night, Musk shared a Twitter post informing his followers that he would be facing a massive tax bill.

“For those wondering, I will pay over $11 billion in taxes this year,” he tweeted.

Musk’s announcement comes amid reports that his 22.9 million vested Tesla stock options, which were awarded in 2012, are scheduled to expire in August 2022. Exercising those options alone could cost Musk​​ $9 billion in federal income and Medicare taxes, The Wall Street Journal reports.

While Musk predicts his overall tax bill will fall somewhere over $11 billion, CNBC reported that Musk could pay $12 billion in taxes.

This isn’t the first time Musk’s taxes have made headlines. In November, Sen. Bernie Sanders, I-Vt., reignited his Twitter feud with the billionaire by calling for the wealthy to pay their “fair share” in taxes.

At the time, Musk used disparaging language, which prompted Sanders’ supporters to bash the entrepreneur. Musk went on to suggest he would sell some of his company stock to pay his tax bill.

Musk has previously faced criticism for taking advantage of a tax loophole in which he allows his wealth to remain in the stock awards and gains of Tesla. When Musk, who is worth an estimated $243 billion, needs cash, he borrows money and uses the company’s stock as collateral.

On Monday, Tesla shares briefly dropped by 2% and fell below $900 for the first time since October. Although the company stock is up for the year, its value has decreased by about a quarter after Musk shared a Twitter poll in early November asking followers if he should sell his stock.