In a filing with the U.S. Securities and Exchange Commission (SEC) on Monday, Tesla disclosed that Elon Musk’s total compensation for 2025 is estimated to reach approximately $158.4 billion. This staggering figure includes performance awards valued at up to $132.3 billion and a $26.1 billion “evergreen award.” This compensation package dwarfs the median pay for Tesla employees, highlighting a significant disparity.
A Look at the Numbers
For 2025, the median compensation for Tesla employees, excluding executives, is projected to be $62,786. This figure represents an increase from previous years, with the 2024 median at $57,243 and the 2023 median at $45,811. However, when compared to Musk’s estimated 2025 earnings, the median employee pay is less than one 2.5-millionth of what Musk stands to gain. This substantial difference comes after the Delaware Supreme Court reinstated Musk’s 2018 compensation plan.
Stock Options and Awards
In August 2025, Tesla’s board approved granting Musk 96 million shares of restricted stock as part of the 2018 compensation package. While Musk relinquished the “evergreen award” portion in April, he exercised all 303,960,630 options from the 2018 plan on June 16. Instead of using cash, Tesla withheld 17,531,857 shares to cover the exercise costs. The remaining shares were converted into restricted stock, scheduled to vest in January 2028.
It’s important to note that Musk’s compensation from Tesla is entirely equity-based. He only receives these awards if the company meets predetermined performance targets. According to SEC reporting standards, the actual pay disbursed to Musk in 2025 was $10.37 billion. However, using its own “realized compensation” metrics, Tesla records Musk’s pay as $0, as he receives no regular salary and has not sold any exercised shares.
Performance Metrics and Future Outlook
Tesla issued 42,374,3904 restricted shares to Musk, tied to 12 specific market and operational goals. A key objective is increasing Tesla’s market capitalization from $2 trillion to $8.5 trillion. According to the proxy filing, none of these targets have been met yet. Musk previously had a base salary equivalent to California’s minimum wage, but he never drew this salary, and it was rescinded in 2019 at his request. This means his remuneration is now solely dependent on the company’s stock performance and achievement of ambitious growth targets.
Company Performance and Musk’s Wealth
Tesla is set to release its third-quarter earnings after market close on Wednesday, a report keenly watched by investors. The company recently announced better-than-expected global deliveries of 486,532 vehicles for the third quarter. To avoid a decline in deliveries for the third consecutive year, Tesla needs to deliver at least 311,448 vehicles in the fourth quarter. As of Monday afternoon, Musk’s estimated net worth was $934.8 billion, according to the Forbes Real-Time Billionaires list. His wealth is heavily concentrated in his stakes in Tesla (approximately 11%) and SpaceX (approximately 38%), making him particularly sensitive to the stock performance of these two companies.
