Opens in a new tab

Breaking news

Tesla’s Profit Shifting Strategy: Navigating Global Tax Landscapes

Tesla Reports Zero Federal Tax For 2025

Tesla reported a federal tax liability of $0 for 2025 in its latest filing with U.S. regulators. Over a longer period, the company generated $264 billion in U.S. revenue while maintaining limited federal tax payments. This outcome has been linked to prior losses carried forward and the use of federal incentives tied to clean energy.

Uncovering Strategic Profit Shifting

An analysis by Reuters, based on regulatory filings across 14 countries, identified additional tax strategies. Subsidiaries in the Netherlands and Singapore reported a combined $18 billion in profits that were not taxed in the United States. The structure reflects the use of profit shifting, where earnings are recorded in jurisdictions with lower tax rates. Estimated tax savings linked to this approach reach around $400 million.

Decoding The Complexities Of Tax Law

Tax specialists, including former U.S. Treasury officials and academic experts, note that such structures are widely used by multinational companies and generally comply with existing rules. Profit shifting typically involves allocating income through intellectual property ownership and internal agreements. Tesla’s use of overseas entities to manage patents and technology allows certain revenues generated in the United States to be recorded in lower-tax jurisdictions.

Global Operations And A Shift In Reporting

Recent filings indicate that profits reported through Tesla’s entities in the Netherlands and Singapore faced limited taxation locally. One example is Tesla Motors Singapore Holdings, which controls a Dutch entity structured as a non-resident partnership. While operational decisions remain centralized in the United States, the allocation of profits across jurisdictions reflects a structured approach to global tax management.

An Evolving Tax Landscape

Tesla has not publicly commented in detail on these findings. However, its latest 10-K filing suggests a shift in reporting patterns. In 2025, more than 90% of global profits were recorded in the United States, compared with 27% in earlier profitable years. This change may indicate adjustments in how the company structures its international operations.

Closing Observations

The case highlights ongoing scrutiny of multinational tax practices as regulators review cross-border tax frameworks. Although profit shifting remains legally permitted, it continues to raise broader questions about corporate taxation and transparency. Tesla’s filings provide a current example of how global companies manage tax exposure within existing rules.

Europe’s Deadly Summer Heat Exposed The Cost Of A Warming Continent

Europe experienced its deadliest summer for heat-related deaths on record in 2026, with an estimated 24,400 excess deaths linked to extreme temperatures across 30 countries. Researchers estimate that human-induced climate change was responsible for around 32,000 of the deaths attributed to heat in the study’s broader analysis, accounting for 65% of the total.

The findings highlight the growing public-health consequences of global warming, largely driven by fossil fuel use, as extreme heat becomes more frequent and severe.

A Summer Of Dangerous Heat

Between June and August, heatwaves pushed temperatures in Western Europe to an average of 2.9°C above the 1991–2020 norm, with some days reaching 12°C above average. Nearly a third of estimated heat-related deaths occurred during a particularly intense heatwave between 17 June and 1 July.

“These numbers are a stark reminder that our hotter, more extreme summers are having an increasingly severe impact on public health,” said Dr Clair Barnes, a researcher at Imperial College London and co-author of the study.

The estimated toll exceeded previous peaks of around 29,000 deaths in summer 2022 and 28,000 in 2003 across the region studied.

How Researchers Estimated The Toll

Researchers modelled the relationship between temperature and mortality across 854 urban areas in the EU, UK, Norway and Switzerland, covering around 40% of the population in the 30 countries studied.

The analysis incorporated temperature records, age, socioeconomic conditions, environmental factors and access to healthcare. By comparing actual temperatures with those expected without human-induced warming, the team estimated the additional deaths attributable to climate change.

Final official mortality figures for summer 2026 are not yet available in many countries, and heat-related deaths are often underreported because their effects can be difficult to identify directly.

Older People Face The Greatest Risk

People aged 85 and over accounted for roughly half of the estimated deaths. However, the impact extended across age groups, with around 800 excess deaths among adults aged 20–44 and approximately 6,000 among people under 65.

Southern Europe experienced the highest mortality burden, reflecting hotter temperatures and other vulnerabilities, including air pollution, limited green space and unequal access to healthcare and heat-alert systems.

Italy, France And Spain Record Highest Toll

Italy recorded an estimated 13,303 heat-related excess deaths, followed by France with 7,268 and Spain with 6,824. Germany recorded around 6,340, while the UK saw an estimated 4,354 deaths.

In the UK, the heat also placed significant pressure on healthcare services. Andrew Hartle, Professor of Practice of Anaesthesia at Imperial College Healthcare, said demand during the summer resembled that of a severe winter virus season.

Cities Urged To Strengthen Heat Protection

Researchers say cities can reduce the risks through climate shelters, external shading and building retrofits, alongside measures to help residents avoid exposure during the hottest hours. Checking on vulnerable people, staying hydrated and following heat alerts are also important.

The researchers stress that adaptation must go hand in hand with reducing fossil fuel use to limit further warming. The findings underline that extreme heat is already a major public-health threat across Europe, with thousands of lives at risk each summer.

The Future Forbes Realty Global Properties
eCredo
Aretilaw firm
Uol

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter