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tesla
How Much Federal Income Tax Will Elon Musk’s Tesla Pay on $5.7 Billion in 2025 Revenue? $0
The Trump administration and Republicans in Congress "have allowed a hugely profitable corporation to avoid paying even a dime of federal income tax on their 2025 US profits."
Jan 29, 2026
Tesla, the electric car company led by former Trump administration special government employee Elon Musk, released its annual financial report Thursday, showing that it doubled its yearly income in 2025 over the previous year and brought in $5.7 billion.
The company, whose CEO spent several months rooting out what he claimed was fraud and waste across the federal government, reported "precisely zero current federal income tax" on the billions it made, according to an analysis by the Institute on Taxation and Economic Policy (ITEP).
The group explained that Tesla used accelerated depreciation, reducing the value of its capital assets, while also slashing its tax bill with tax breaks for its executive stock options.
Research and development tax credits netted $352 million in additional tax savings, and the company used "net operating losses stored up from previous years to offset current year income, although it’s hard to know how much of that affects US income rather than foreign income," said ITEP.
Analyzing the financial report, ITEP found that Tesla received over $1.1 billion in federal income tax breaks, paid for by US taxpayers, last year alone—after paying 0.4% of its US profits in federal income taxes over the previous three years.
Over that time period, said ITEP, "the Elon Musk-led company reported $12.58 billion of U.S. income on which its current federal tax was just $48 million... The company reported an effective federal income tax rate of 0.4%. This is a tiny fraction of the 21% tax rate profitable corporations are supposed to pay under the law."
The most it paid in taxes over the past three years was in 2023, when Tesla paid $48 million, at the federal effective tax rate of 1.2%. That was still just a fraction of the $823 million it would have paid if it had paid the federal corporate tax rate. In 2023, the company enjoyed $775 million in tax breaks.
The company's income tax payments worldwide in 2025 totaled $1.2 billion, with more than $1 billion going to China and other foreign governments. Tesla paid $28 million to the US government, "presumably related to tax years before 2025," said ITEP.
The organization noted that the "billion-dollar tax break" enjoyed by Tesla does not appear to be illegal.
However, ITEP said, it illustrates how the Trump administration and Republicans in Congress, by passing changes to corporate tax laws in the One Big Beautiful Bill Act (OBBBA) last summer, "have allowed a hugely profitable corporation to avoid paying even a dime of federal income tax on their 2025 US profits."
The organization warned last summer that special business tax breaks included in the OBBBA, including a reinstatement of bonus depreciation and new international rules, would cost the US government $165 billion in revenue in 2026.
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Tesla Robotaxis Are Crashing More Than 12 Times as Frequently as Human Drivers: Report
The new data comes as Tesla is removing human safety monitors from its driverless taxi fleet.
Dec 16, 2025
Proponents of driverless cars often tout them as a safer alternative to cars with human drivers—but such claims don't appear to be holding up so far in the case of Tesla's Robotaxis.
A Monday report from Elektrek found that Tesla Robotaxis are crashing much more frequently than cars driven by humans, as the company has now reported eight crashes of its driverless taxi fleet in Austin, Texas to the National Highway Traffic Safety Administration since July.
Elektrek also crunched some numbers based on data released by Tesla last month and estimated that the Tesla Robotaxis are involved in a crash for every 40,000 miles they drive. For comparison, the publication reported, cars driven by humans crash about once every 500,000 miles, meaning the Robotaxis so far have crashed 12.5 times more frequently than human-driven cars.
All of the Robotaxi crashes so far have occurred with human safety monitors—who have been trained to take control of the car in the event of a software error—present in the vehicles.
This is significant because, as TechCrunch reported on Monday, Tesla is starting to send out its Robotaxi fleet without safety monitors.
TechCrunch noted that "the removal of the human safety monitors brings the company a critical step closer to its goal of launching a real commercial Robotaxi service," but also said it "will most likely ramp up the scrutiny on Tesla’s ongoing testing in Austin, doubly so when the company starts offering rides in the empty cars."
Tesla's bet on Robotaxis has grown more important given that its vehicle sales in the US and around the world have been dropping significantly so far this year, in part due to a boycott campaign inspired by outrage over CEO Elon Musk's support for far-right political parties.
According to a report from Reuters, the most recent data from car software company Cox Automotive shows that US Tesla sales dropped to a four-year low last month. The news agency also pointed out that Tesla now "is offering financing deals as low as 0% on the Standard Model Y," which is "a sign of weak demand."
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As Americans Live Paycheck to Paycheck, Tesla Shareholders Approve Musk's $1 Trillion Package
"Americans understand we're living in a rigged economy," said Sen. Bernie Sanders. "Together, we can and must change that."
Nov 06, 2025
Elon Musk is the world's richest person, with an estimated net worth of nearly $500 billion, but the Tesla CEO could become the world's first trillionaire, thanks to a controversial pay package approved Thursday by the electric vehicle company's shareholders.
Ahead of the vote, a coalition of labor unions and progressive advocacy groups launched the "Take Back Tesla" campaign, urging shareholders to reject the package for its CEO, who spent much of this year spearheading President Donald Trump's so-called Department of Government Efficiency (DOGE), which prompted nationwide protests targeting the company.
Musk's nearly $1 trillion package would be the biggest corporate compensation plan in history if he gets the full amount by boosting share value "eightfold over the next decade" and staying at Tesla for at least that long. It was approved at the company's annual meeting after the billionaire's previous payout, worth $56 billion, was invalidated by a judge.
The approval vote sparked another wave of intense criticism from progressive groups and politicians who opposed it—including on Musk's own social media platform, X.
"Musk, who spent $270 million to get Trump elected, is now in line to become a trillionaire," Sen. Bernie Sanders (I-Vt.) wrote on X. "Meanwhile, 60% of our people are living paycheck to paycheck. Americans understand we're living in a rigged economy. Together, we can and must change that."
The vote came during the longest-ever federal government shutdown, which has sparked court battles over the Supplemental Nutrition Assistance Program. A judge on Thursday ordered the full funding of 42 million low-income Americans' November SNAP benefits, but it is not yet clear whether the Trump administration will comply.
The Sunrise Movement, a youth-led climate group, noted the uncertainty over federal food aid in response to the Tesla vote, saying: "Meanwhile, millions of kids are losing SNAP benefits and healthcare because of Musk's allies in DC. In a country rich enough to have trillionaires, there's no excuse for letting kids go hungry."
Robert Reich, a former labor secretary who's now a professor at the University of California, Berkeley, said: "Remember: Wealth cannot be separated from power. We've seen how the extreme concentration of wealth is distorting our politics, rigging our markets, and granting unprecedented power to a handful of billionaires. Be warned."
In remarks to the Washington Post, another professor warned that other companies could soon follow suit:
Rohan Williamson, professor of finance at Georgetown University, said Musk's argument for commanding such a vast paycheck is largely unique to Tesla—though similar deals may become more prevalent in an age of founder-led startups.
"No matter how you slice it, it's a lot," Williamson said. But the deal seeks to emphasize Musk’s central—even singular—role in the company's rise, and its fate going forward.
"I drove this to where it is and without me it's going to fail," Williamson said, summarizing Musk's argument.
"No CEO is 'worth' $1 trillion. Full stop," the advocacy group Patriotic Millionaires argued Wednesday, ahead of the vote. "We need legislative solutions like the Tax Excessive CEO Pay Act, which would raise taxes on corporations that pay their executives more than 50 times the wages of their workers."
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