Inside Elon Musk's Strategy To Shelter Tesla From Billions In US Taxes—Was Bernie Sanders Right?

While Tesla Inc. (NASDAQ:TSLA) reported a zero-dollar federal tax bill for 2025, findings have revealed another significant source of tax savings for the company.

Over the past two decades, Tesla has reported little to no U.S. federal tax liability in most years, largely due to deductions from prior losses and incentives tied to clean energy tax credits, Reuters reported.

However, a review of Tesla’s corporate filings by the publication revealed another significant source of savings. Tesla's subsidiaries in the Netherlands and Singapore reported $18 billion in untaxed profits. If not for profit shifting, a financial strategy that reallocates earnings across jurisdictions, these profits would likely have been declared and taxed in the U.S., which could have resulted in Tesla paying over $400 million more in U.S. taxes, the report said.

Regulatory filings in Singapore show that Tesla Motors Singapore Holdings received approximately $18 billion in profits between 2023 and early 2025 from TM International, a Dutch subsidiary of which it owns more than 99%.

TM International is registered in the Netherlands as a non-resident partnership. According to Dutch registry records, it has no employees ...

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