Elon Musk faces a hefty tax invoice this yr — probably the largest in U.S. historical past.

“For these questioning, I’ll pay over $11 billion in taxes this yr,” the Tesla CEO tweeted on Monday.

That is near a CNBC estimate that Musk was set to pay a complete of $12 billion in taxes in 2021.

Musk has offered off $14 billion value of Tesla inventory since early November, after asking his followers in a Twitter ballot if he ought to promote 10% of his holdings. The response to that ballot was a convincing “sure.”

However it’s probably Musk would have begun promoting anyway. That is as a result of he faces an enormous tax invoice on Tesla inventory choices.

Inventory choices Musk was awarded in 2012 are set to run out in August subsequent yr. With a view to train them, he has to pay earnings tax on the acquire.

Moderately than take a wage or money bonus, Musk’s wealth comes from inventory awards and beneficial properties in Tesla’s share worth.

Although Tesla shares have taken a tumble since Musk’s Twitter ballot, they continue to be extremely worthwhile — the inventory is up 28% year-to-date.

When Musk needs money, he can merely borrow cash utilizing his firm’s inventory as collateral. Nonetheless, this follow has been criticized by some politicians as a tax loophole for the mega-rich.

Earlier this yr, ProPublica printed an investigation exhibiting Musk and a number of other different billionaires paid no federal earnings taxes in 2018.

Between 2014 and 2018, Musk paid $455 million in taxes on $1.52 billion of earnings, in line with ProPublica, regardless of his wealth rising by $13.9 billion over that interval.

In accordance with Forbes, Musk is value over $244 billion on paper, making him the world’s richest man.

Musk may have waited till subsequent yr to pay the tax invoice, however that may have meant doubtlessly getting hit by greater tax charges beneath the Democrats’ Construct Again Higher invoice.

The Tesla and SpaceX chief has been sparring with distinguished Democrats on Twitter recently over the problem of tax avoidance.

Final week, he fired again at Senator Elizabeth Warren after she questioned Time Journal’s resolution to call Musk its Particular person of the Yr, tweeting: “I’ll pay extra taxes than any American in historical past this yr.”

And if Musk does find yourself paying the large sum he mentioned he would, there’s an opportunity he could also be proper.