September 21st, 2022

Of the 100,000+ employees hired by Tesla, if you take the worst employee per thousand employees, that is still 100 employees. These employees could range from parasites trying to incorporate dependencies on Tesla for special interests, to malicious mischief makers, liars, thieves, or saboteurs.

But single employees can only do so much damage before suspicions rise. To really hit Tesla in a way that matters, you need to scale this by orders of magnitude.

Enter the US Government. Under the guise of being the most reasonable politicians in a sea of blatant corruption, we have Bernie Sanders, Elizabeth Warren, and this clown Robert Riech.

How does one take as much as possible away from Elon Musk? Taxes.

We aren't talking about a Private Investigator, who would take Elon for $50K, we are talking about hitting Elon for $11B. The government has skipped the entire step of taxing Elon based on Salary for millions because he makes no salary. They managed to hit Elon for 6 orders of magnitude more.

The strategy: turn the public against Elon for not paying taxes

You see, nobody needs billions of dollars to live. Elon lives quite modestly most of the time in Texas in a Boxabl. When you work almost all waking hours as Elon does, there isn't much time to spend leisurely or recklessly. Elon doesn't take a salary, and if he did, it would only be for millions. If they taxed him on that, he would be used to paying the government millions of dollars in tax which is only 3 orders of magnitude.

It isn't enough for the US Government to collect tax money from Tesla the company, Tesla the employees, and various levels of the supply chain. Why not take Elon's company away and make him pay for that process? The US Government Senators Bernie Sanders and Elizabeth Warren created a narrative where the only plausible outcome was to tax wealthy based on wealth.

If this was put on a bill and passed by Congress, it would have some %. What that % is, I don't know. But for illustration purposes, we could call it 10%.

So Elon has to sell shares of his company to pay this 10% or borrow from trustworthy banks. That amount would be $22B. So Elon sells $22B, now Elon has a $22B capital gain at which he is taxed 50%. So he would have to pay $22B + $11B. Ultimately he would have to sell to pay the $11B and basically, this would converge on selling $44B of stock to satisfy the wealth tax obligation and capital gains.

Obviously, this wouldn't be exactly how it worked but it illustrates the point that under the guise of a 10% wealth tax, Elon could quickly be robbed of 20% of the company. And that goes for each company.

TBC

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ABOUT THE AUTHOR:
I am long TSLA and TSLA options. I am not a financial advisor. Investing in anything comes with inherent risk. This is not financial advice.