News
“Elon Musk provision:” CA ponders wealth tax–even for those who moved out of state
California legislators are advocating for legislation that would introduce a new tax on the state’s wealthiest residents, even if they have already relocated to another area of the country. The bill was introduced by Assemblyman Alex Lee, a progressive Democrat in the California State Legislature.
Lee’s bill would impose an additional annual 1.5% tax on individuals with a “worldwide net worth” over $1 billion, beginning as early as January 2024. As early as 2026, the bill’s threshold would drop, as individuals with a worldwide net worth over $50 million would also be hit with a 1% annual tax on wealth. Lee estimates that the proposal could raise about $22 billion in new revenue for the state.
In a post on Twitter, Lee noted that the bill is a way for the ultra-rich to pay their fair share. “The working class has shouldered the tax burden for too long. In CA, we’ve introduced #ACA3 + #AB259 to tax the ultra rich & invest in all Californians. The ultra rich are paying little to nothing by hoarding their wealth through assets. Time to end that,” Lee wrote in a post.
While exit taxes are not new in California, the bill includes provisions to create contractual claims tied to the assets of wealthy taxpayers who are unable to pay their annual wealth tax bill because the majority of their assets are not easily converted to cash. The bill would then require annual filings with the California Franchise Tax Board so the individuals can pay the wealth taxes they owe, even if they have already relocated to another state.
Steve Boultbee, a tax partner at Marcum LLP in San Francisco, told the San Francisco Business Times that the proposed tax appears to be a way to discourage residents of California from relocating to another state, especially before an initial public offering or other liquidity events. Boultbee noted that individuals such as Tesla CEO Elon Musk could be affected by the bill.
“You’re gonna have to have left four years before, or they’re going to conceivably get you for something. My first thought is that this could be an ‘Elon Musk provision’ since he moved to Texas,” the tax partner said.
Supporters of the legislation have argued that the funds it could collect from the state’s wealthiest could provide funding for key programs, such as schools, housing, and other social initiatives. Experts, however, have argued against the bill. Jared Walczak, vice president of state projects at Tax Foundation, noted in a statement to Fox News Digital that the bill would actually damage the state’s economy.
“The proposed California wealth tax would be economically destructive, challenging to administer, and would drive many wealthy residents — and all their current tax payments — out of state. The bill sets aside as much as $660 million per year just for administrative costs, more than $40,000 per prospective taxpayer, giving an idea of how difficult such a tax would be to administer.
“A wealth tax could be particularly destructive in California, home to so many tech startups, because the owners of promising businesses could be taxed on hundreds of millions of dollars’ worth of estimated business value that never actually materializes. Very few taxpayers would remit wealth taxes, but many taxpayers would pay the price,” Walczak added.
Patrick Gleason, vice president of state affairs at Americans for Tax Reform, also told the publication that the bill’s system to “get around” the problem of the wealthy leaving California by trying to “tax people even after they leave the state” is questionable at best, or unconstitutional at worst. It should be noted that previous studies have demonstrated that the top 1% of taxpayers in states such as New York and California actually contribute approximately 50% of state income taxes, just as highlighted by individuals such as Elon Musk in the past.
According to Forbes’ 2022 World’s Billionaires list, California remains home to the most billionaires in the country, with 186 living in the state. This is a decrease from the previous year’s count of 189. Despite this, several companies, such as McKesson, Oracle, Tesla, and Charles Schwab, have relocated their headquarters to Texas in recent years.
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Elon Musk
Texas township wants The Boring Company to build it a Loop system
The township’s board unanimously approved an application to The Boring Company’s “Tunnel Vision Challenge.”
The Woodlands Township, Texas, has formally entered The Boring Company’s tunneling sweepstakes.
The township’s board unanimously approved an application to The Boring Company’s “Tunnel Vision Challenge,” which offers up to one mile of tunnel construction at no cost to a selected community.
The Woodlands’ proposal, dubbed “The Current,” features two parallel 12-foot-diameter tunnels beneath the Town Center corridor near The Waterway. Teslas would shuttle passengers between Waterway Square, Cynthia Woods Mitchell Pavilion, Town Green Park and nearby hotels during concerts and large-scale events, as noted in a Chron report.
Township officials framed the tunnel as a solution for the township’s traffic congestion issues. The Pavilion alone hosts more than 60 shows each year and can accommodate crowds of up to 16,500, often straining Lake Robbins Drive and surrounding intersections.
“We know we have traffic impacts and pedestrian movement challenges, especially in the Town Center area,” Chris Nunes, chief operating officer of The Woodlands Township, stated during the meeting.
“The Current” mirrors the Loop system operating beneath the Las Vegas Convention Center, where Tesla vehicles transport passengers through underground tunnels between venues and resorts.
The Boring Company issued its request for proposals (RFP) in mid-January, inviting cities and districts to pitch local uses for its tunneling technology. The Woodlands must submit its application by Feb. 23, though no timeline has been provided for when a winning community will be announced.
Nunes confirmed that the board has authorized a submission for “The Current’s” proposal, though he emphasized that the project is still in its preliminary stages.
“The Woodlands Township Board of Directors has authorized staff to submit an application to The Boring Company, which has issued an RFP for communities interested in leveraging their technology to address community challenges,” he said in a statement.
“The Board believes that an underground tunnel would provide a safe and efficient means to transport people to and from various high-use community amenities in our Town Center.”
News
Tesla Model Y wins 2026 Drive Car of the Year award in Australia
The Model Y is already Australia’s best-selling EV in 2025 and the tenth best-selling vehicle overall.
The Tesla Model Y has been named 2026 Drive Car of the Year overall winner, taking the top honor after being judged as the vehicle that “moves the game forward the most for Australian new car buyers.”
The Model Y is already Australia’s best-selling EV in 2025 and the tenth best-selling vehicle overall, but the vehicle’s Juniper update strengthened its case with new ownership benefits and expanded software capability.
Drive’s overall award compares category winners and looks at which model most significantly advances the local new car market. In 2026, judges pointed to the Model Y’s five-year warranty and the availability of Full Self-Driving (Supervised) as a monthly subscription as key differentiators.
Priced from AU$58,900 before on-road costs, the all-electric crossover SUV offers a lot of value compared to similarly sized petrol and hybrid rivals. The ability to access Tesla’s Supercharger network across Australia also reduces friction for buyers moving to EV ownership.
Owners can add FSD (Supervised) for AU$149 per month. While it still requires driver oversight, the system expands the vehicle’s advanced driver-assistance capabilities and reflects Tesla’s software-first approach.
“The default choice for a reason. The Tesla Model Y makes the transition to electric both effortless and rewarding,” Drive wrote.
The 2025 Model Y facelift also sharpened the vehicle’s exterior, highlighted by a distinctive rear light bar that gives the crossover SUV a more modern road presence.
Drive described the Model Y as a benchmark for combining practicality, efficiency and technology at an accessible price point. With eligibility for federal Fringe Benefit Tax exemptions through novated leasing, its value proposition has improved for numerous buyers.
For 2026, the Model Y’s combination of range efficiency, charging access and software capability proved decisive. Ultimately, the award all but cements the Model Y’s position as one of the most influential vehicles in Australia’s evolving new-car market today.
Elon Musk
Elon Musk reiterates rapid Starship V3 timeline with next launch in sight
Musk shared the update in a brief post on X, writing, “Starship flies again next month.”
Elon Musk has confirmed that Starship will fly again next month, reiterating SpaceX’s aggressive timeline for the first launch of its Starship V3 rocket.
Musk shared the update in a brief post on X, writing, “Starship flies again next month.” The CEO’s post was accompanied by a video of Starship’s Super Heavy booster being successfully caught by a launch tower in Starbase, Texas.
The timeline is notable. In late January, Musk stated that Starship’s next flight, Flight 12, was expected in about six weeks. This placed the expected mission date sometime in March. That estimate aligned with SpaceX’s earlier statement that Starship’s 12th flight test “remains targeted for the first quarter of 2026.”
If the vehicle does indeed fly next month, it would mark the debut of Starship V3, the upgraded platform expected to feature the rocket’s new Raptor V3 engines.
Raptor V3 is designed to deliver significantly higher thrust than earlier versions while reducing cost and weight. Starship V3 itself is expected to be optimized for manufacturability, a critical step if SpaceX intends to scale production toward frequent launches for Starlink, lunar missions, and eventually Mars.
Starship V3 is widely viewed as the version that transitions the program from experimental testing to true operational scaling. Previous iterations have completed multiple integrated flight tests, with mixed outcomes but steady progress. Expectations are high that SpaceX is now working on Starship’s refinement.
An aggressive launch schedule supports several priorities at once. It advances Starlink’s next-generation satellite deployment, supports NASA’s lunar ambitions under Artemis, and keeps SpaceX on track for its longer-term Moon and Mars objectives.
Texas township wants The Boring Company to build it a Loop system
Tesla Model Y wins 2026 Drive Car of the Year award in Australia
