Elon Musk's plan for Tesla's restaurant business moves a step closer

Electric cars, space exploration and now burgers. Elon Musk's latest venture is a little more down to earth than what we've come to expect from the billionaire entrepreneur.

The Tesla founder expressed his plans on Twitter back in 2018 for an "old school drive-in, roller skates and rock restaurant at one of the new Tesla Supercharger locations in LA".

Now the idea is a step closer to reality after Tesla submitted documents to the City of Los Angeles for a diner that would be open 24 hours a day at 7001 West Santa Monica Boulevard in Hollywood.

The 864-square-metre space includes plans for a drive-in movie theatre and a 28-stall supercharging station, Bloomberg reported.

There will be a two-storey diner with more than 200 seats, indoors and outside, with views of two tall movie screens.

Last June, Tesla filed an application for three new trademarks with the US Patent and Trademark Office, with the intention of using its T logo design and two other versions of the Tesla stylised logo in the food industry.

These trademarks would cover "restaurant services, pop-up restaurant services, self-service restaurant services, take-out restaurant services", Tesla said in the application.

The original location of the Tesla restaurant was reported to be in Santa Monica, although that supercharger location opened in February without any branded eating options.

Tesla has not commented further on the restaurant plans, although Mr Musk did add weight to his plans in February when on Twitter he again mentioned a "futuristic diner / drive-in theatre" concept.

"And, of course, you can pay in Ðoge," he said, referring to the open source peer-to-peer digital currency Dogecoin.

Tesla shares plunged 6.9 per cent to $628.16 in New York on Tuesday because of production woes in China.

The shares rose 50 per cent last year and closed at $1,145 on April 4, when Mr Musk announced his 9.2 per cent stake in Twitter.

Tesla’s stock has been in freefall since, sinking to $620.57 at its lowest on Tuesday and wiping out almost half its market capitalisation after touching a record high in November.

While you're here

Richard Jolly: Man City's appeal win eradicates uncertainty over club's future prospects

Nick March: City fans don’t miss the bad old days, they’re too busy living in the moment

Damien McElroy: What the failed Newcastle takeover says about Boris Johnson's Britain

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Elon Musk's plan for Tesla's restaurant business moves a step closer

A futuristic diner has been on the menu for the electric carmaker for some time

While you're here

Ten tax points to be aware of in 2026

Living in...