A Reuters review found that Tesla used subsidiaries in the Netherlands and Singapore to report about $18 billion in profits that were not taxed in those countries, a move that likely reduced the company's U.S. tax burden.
For all but one of the past 20 years, Tesla declared owing no U.S. federal income tax while reporting roughly $264 billion in U.S. revenues; filings show Tesla Motors Singapore Holdings received about $18 billion from TM International between 2023 and early 2025.
Dutch registries list TM International as a non-resident partnership with no employees and no requirement to file financial statements or pay Dutch taxes, while Singapore filings show the unit was not taxed on income from the partnership.
Reuters estimated the arrangement likely saved more than $400 million in U.S. taxes and noted that such structures are permitted under current global tax codes; Tesla has not publicly explained the purpose of the Dutch and Singapore units.
This article is based on reporting from Jalopnik.
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