Elon Musk’s Tesla Pay Valued at $158bn — But He Can’t Pocket It
🕐 May 2, 2026 | Tesla’s regulatory filing to the SEC reveals staggering compensation details
Tesla has valued its compensation for billionaire CEO Elon Musk at a whopping $158bn (£117bn) in 2025, according to regulatory filings submitted to the US Securities and Exchange Commission (SEC) on Thursday. However, the company also disclosed that Musk will not be receiving any of it.
The Conditions of the Pay Package
Musk’s compensation reflects Tesla’s estimate of what he would earn should he meet the terms of an astronomical pay deal approved by shareholders in November last year. However, it only becomes payable if he hits ambitious milestones, including raising the company’s market value to $8.5 trillion — at which point Musk could be awarded shares worth up to $1 trillion.
Unmet Milestones
Analysts say he has some way to go before achieving those targets, meaning the monster pay package is nominal only, for now at least.
“Elon Musk isn’t actually going to pocket $158bn,” said Danni Hewson, head of financial analysis at AJ Bell. “He’s still got a whole bunch of targets to hit and none of the milestones set out in the $1 trillion pay deal approved by shareholders last year were achieved in 2025.”
She told the BBC that Musk’s compensation figures, disclosed in the SEC filing, are “a promise he’ll receive that amount in Tesla shares for his work over the past year if he does manage to deliver.”
The Targets Musk Must Meet
To earn the compensation, Musk must achieve the following operational milestones:
- Raising Tesla delivery levels to 20 million vehicles and one million robots
- Getting 10 million subscriptions to Tesla’s Full Self-Driving feature
- Bringing one million self-driving Robotaxi vehicles into commercial operation
- Earning up to $400bn in core profit
- Eventually lifting Tesla’s overall market value to $8.5 trillion
Meeting these goals would see Musk awarded a stock grant of more than 400 million additional Tesla shares — worth around $1 trillion if the firm’s market value is raised high enough.
Background
Musk comfortably sits as the world’s richest person, with his net worth currently estimated at $651bn by Bloomberg and $788bn by Forbes. Hewson noted that while Musk does not receive a salary for his work at Tesla, he can certainly “bide his time” — his other companies, particularly SpaceX (recently merged with xAI and preparing for an IPO), provide him with enormous financial security.
Source: BBC News