World's second richest man Elon Musk plans to move to Texas to save state income tax

World's second richest man Elon Musk has proved that tax-saving investments are not only opted by middle-class people, but by billionaires as well. Tesla and SpaceX CEO Elon Musk is reportedly planning to leave California and move to Texas, in order to save state income tax. Texas has no state income tax and Elon Musk's move to shift to Texas could save him billions of dollars. 

According to a CNBC report, many close friends and associates of the billionaire said that Musk is planning to move to the Lone Star State. Even the people who are well acquainted with him and are aware of his general plans to move to Texas said they don't know where exactly he stays and that he tries to keep those details private, it said. 

In May this year, the business tycoon said he was selling all his houses and his California properties too. His move to Texas sounds sensible as it has no state income tax while California has the highest tax regime in the United States. Besides, Musk frequently visits Texas where the operations of Tesla, his startup Boring Company and SpaceX facility are based.

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Musk becomes world's second wealthiest man

Musk last month surpassed his “sparring partner” Microsoft co-founder Bill Gates to become the second richest person in the world. Musk’s net worth surged from $7.2 billion to $127.9 billion driven by an exponential rise in Tesla’s share price. The SpaceX Founder, who ranked 35th in Bloomberg Billionaires Index at the start of the year has grown fast adding $100. 3 billion to his net worth in 2020.

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The 49-year-old business Magnate’s growth has been driven largely by Tesla, whose market value is nearing $500 billion. Musk was forced to give up his position of Chairman in the electric car manufacturing firm in 2018 after he was sued by US Securities and Exchange Commission. However, about three-quarters of his net worth are comprised of Tesla shares, which are four times higher than SpaceX. Apart from Tesla, his remaining riches are a direct benefit from his stake in Space Exploration Technologies Corp., or SpaceX.

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