Saturday, March 15, 2025

Tesla: It is not illegal to pay 0 kroner in taxes

It sounds like something Mogens Glistrup might have said. But the words come from Tesla, which is also not much for paying taxes.

Tesla does not believe that it is fraud that they pay 0 kroner in taxes. The non-existent tax rate is a fact, even though Tesla is shoveling in money and orders for new cars.

Tesla's CFO Sendil Palana writes on the social media "X" that Tesla's income taxes are not an example of fraud.

– Tesla complies with all tax regulations in all regions of the world where the company operates. This means that Tesla also complies with the regulations in the United States, even though they do not pay state taxes.

Tesla CEO Elon Musk is the head of the unofficial Doge chapter, where he leads a kind of crusade against what he considers fraud and waste of taxpayer money in the United States.

He has been very active in and around American politics. Musk also played a role in the closure of the emergency aid organization USAID after allegations of fraud.

However, there is one thing the Tesla director is not allowed to comment on – namely the car brand's tax situation.

A debate has now arisen in the United States about why Tesla does not pay income tax in the United States, even though the company has large profits.

Elon Musk's past actions have made him a target for criticism. However, he has responded to the criticism via X.

According to Musk, Tesla has had large losses for many years. Therefore, not a single kroner in taxes will have to be paid, even though billions are rolling in. Because theoretically, it's only on paper, if you ask the director.

He also points out that the majority of Tesla's profits come from production and sales abroad and not in the United States.

Musk believes that tax reform is needed. Tesla's CFO, Sendil Palana, has also responded to the accusations.

He reiterated that Tesla's income taxes are not an example of fraud and that Tesla complies with all applicable tax regulations.

https://twitter.com/sendilpalani/status/1888694584894754947

"Tesla is a global company that operates in many different countries. Each country has its own tax rules, and it is up to companies to comply with these rules," says Sendil Palana.

It is not uncommon for large companies like Tesla to not pay state income tax in the United States, as there are many different deductions and exemptions available in the American tax system.

Several large companies that are based here are also withdrawing their money from the country. In this way, it looks as if Danish business is not making money. And without money, there is nothing to pay taxes on.

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