Tesla moved $18 billion in profits offshore and saved hundreds of millions in taxes - Reuters

Tesla, owned by Elon Musk, likely used foreign structures to reduce taxes in the United States and saved at least $400 million, Reuters reports , citing an analysis of the corporate reporting of the company and its subsidiaries.

According to the agency, in 2023-2025, about $18 billion of Tesla's profits were reflected through units in the Netherlands and Singapore. These funds were not subject to tax in these countries or in the United States. Experts interviewed by Reuters believe that this is a standard “profit shifting” scheme - when income is transferred to jurisdictions with lower taxes.

A key role in the scheme, as noted, is played by a structure registered in the Netherlands without employees, which is used as a transit link. Through it, profits were sent to the Singapore division, which was also exempt from taxation on these incomes. Experts attribute this to the transfer of the company’s intellectual property rights to foreign subsidiaries.

Reuters notes that Tesla, for almost its entire history, has either not paid federal taxes in the United States or paid minimal amounts. This is due to both tax benefits and historical losses, as well as similar financial mechanisms.

At the same time, Musk previously publicly stated that he rejects “dubious” methods of cutting taxes. Journalists emphasize that they found no signs of violation of the law: such schemes are widely used by international corporations and remain legal, although they attract criticism.

Tesla's latest earnings report showed that more than 90% of its 2025 profits were generated in the US, up from about 27% in previous years. Experts admit that the company could change its structure, but previously applied schemes have already made it possible to significantly reduce the tax burden.