Tesla Inc., led by Elon Musk, likely saved hundreds of millions in U.S. taxes through offshore financial arrangements, despite Musk’s public criticism of tax loopholes. A review of corporate filings suggests the company shifted around $18 billion in profits to subsidiaries in the Netherlands and Singapore, reducing its U.S. tax burden by at least $400 million.

Experts say these overseas entities likely acted as conduits for profit shifting, a common strategy where companies move earnings to low-tax jurisdictions. The arrangement appears linked to transferring intellectual property rights abroad, allowing profits that would normally be taxed in the United States to be recorded elsewhere. While such practices are legal, they remain controversial and widely debated in global tax policy.

The findings contrast with Musk’s earlier remarks dismissing tax avoidance schemes as “shady.” Although there is no evidence Tesla broke any laws, the case highlights how multinational corporations use complex structures to minimize taxes. Recent filings hint the company may have adjusted its offshore setup, but the financial benefits from past arrangements are expected to remain significant.

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