Tesla likely saved more than $400 million in U.S. taxes through offshore financial arrangements, according to a Reuters investigation published on April 20, 2026.
The report says Tesla used subsidiaries in the Netherlands and Singapore to record around $18 billion in profits between 2023 and 2025. Reuters reported that these profits were not taxed in those countries and may have otherwise been reported in the United States, where they could have faced taxation.
The findings appear to contrast with Elon Musk’s public criticism of tax avoidance. Musk has previously spoken against what he described as “shady” loopholes, while also saying his companies do not try to avoid paying their fair share of U.S. taxes.
According to Reuters, Tesla reported a federal tax bill of zero dollars for 2025. The company has also declared no U.S. federal tax bill for most of the past two decades, despite reporting about $264 billion in U.S. revenue over that period. Reuters noted that part of Tesla’s low tax bill came from earlier business losses and green energy tax benefits, but its investigation points to offshore profit shifting as another major factor.
Tax experts reviewed Reuters’ analysis and said the estimated savings appeared realistic. The report said Tesla’s foreign structures allowed profits to be booked outside the U.S., reducing what the company may have owed in American taxes.
Reuters did not report that Tesla broke the law. The issue instead raises questions about how large multinational companies use legal tax structures to reduce their tax bills while continuing to benefit from public infrastructure, markets, and government incentives.
The case also renews debate over fairness in the global tax system. Critics argue that when major corporations reduce their tax contributions, the burden often shifts to smaller businesses and ordinary taxpayers. Supporters of corporate tax planning, however, say companies are allowed to use legal strategies to manage costs and remain competitive.
Tesla has become one of the world’s most valuable carmakers, with major operations in the United States, Europe, and Asia. The Reuters report is likely to increase scrutiny of how the company handles taxes, especially because Musk has often presented himself as a critic of unfair financial practices.
