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Why Elon Musk Paid $0 in Taxes on $11 Billion—and You’re Still Paying?

Feb 5, 2025

3 min read

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1. The Tax Game You’re Losing 


Imagine this: Tesla made $11 billion in net profit over three years. Elon Musk’s company expanded its factories, built new technologies, and became the most valuable car company in the world.


And yet, they legally paid $0 in federal income taxes.


Meanwhile, you—an individual working hard, running a business, or investing—are still paying thousands in taxes every year. The government keeps taking its share, while billionaires like Musk legally avoid it.


Is the system broken? Or is it rigged for those who understand the rules?


2. What If You Could Play by the Same Rules? 


Here’s the truth: The tax system isn’t broken—it’s working exactly as designed. The government doesn’t just tax income; it incentivizes behavior.


Musk didn’t cheat the system. He used legal tax strategies that exist for anyone who knows how to apply them.


What if you could reduce your taxes the same way Tesla did? What if your business, investments, or income could be structured to keep more of what you earn?


Let’s break it down.


3. How Tesla Legally Paid $0 in Taxes 


1. Net Operating Losses (NOLs)


Tesla lost billions before making money. The tax code allows companies to carry those losses forward, offsetting future profits.


Your Play: If you own a business or invest in real estate, you can carry forward losses to offset future income, just like Tesla.


2. Stock-Based Compensation Deductions


Tesla pays executives—including Musk—in stock options. When exercised, these create massive tax deductions, wiping out taxable income.


Your Play: If you’re a business owner, you can pay yourself in equity, reducing taxable wages and increasing tax-free growth potential.


3. Selling Tax Credits Instead of Paying Taxes


Tesla makes billions selling regulatory credits to other car companies. This revenue is not taxed the same way as normal business income.


Your Play: If you invest in renewable energy or government-incentivized sectors, you can receive or sell tax credits to reduce taxable income.


4. R&D Tax Credits


Tesla spends billions on innovation. The government rewards innovation with R&D tax credits, which directly reduce tax liability.


Your Play: If you have a business or invest in startups, you can leverage R&D credits for tax savings.


5. Capital Expenditure Depreciation


Tesla builds massive Gigafactories and writes off a significant portion of those costs immediately using depreciation.


Your Play: If you own rental properties or a business, you can use cost segregation and depreciation to lower taxable income.


6. International Tax Structuring


Tesla operates worldwide, strategically shifting profits to countries with lower tax rates.

Your Play: If you have international investments or business operations, you can optimize tax location and avoid unnecessary taxation.


4. Take Control of Your Taxes


Here’s the kicker: Tesla didn’t do anything illegal. They just understood the system.

The U.S. tax code is written to reward specific behaviors—those who invest, innovate, and create jobs. If you’re simply earning and paying taxes, you’re funding the incentives others are using to pay less.


Your Next Step: Apply These Strategies


If you’re an entrepreneur, investor, or high-income earner, you can implement similar tax strategies to legally lower your tax bill.


But knowing the rules is just the first step. Taking action is what separates you from the average taxpayer.


🚀 Ready to Take Action? Get Personalized Tax Strategies Education Today!


Want to know how you can structure your income, investments, or business like Tesla?


✅ Book a consultation with Fasioli Mentorship in the dropdown menu under Coaching to see if you qualify for these tax-saving strategies education.


⏳ Every day you wait, you pay more than you should. Take control of your taxes—before the system takes more from you.


📩 Contact Fasioli Mentorship now!


Author: Obsidian A Freeman


Feb 5, 2025

3 min read

2

29

0

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