Tesla Inc. has disclosed Elon Musk's annual compensation for 2025 for the first time since shareholders approved his landmark pay package, revealing a staggering total of US$158 billion. The figure, reported in a regulatory filing late Thursday, comes approximately six months after investors endorsed a US$1 trillion stock award for the electric vehicle maker's longtime chief executive.
Exceptional Compensation Amid Challenges
The amount is extraordinary even by the standards of increasingly large executive packages for leaders considered visionary and essential to their companies' success. Musk transformed Tesla into the global leader in electric vehicles, becoming the world's wealthiest person in the process. However, the automaker has recently faced headwinds from rising competition in China and a relatively stagnant product lineup.
The billionaire has shifted his focus to other ventures within his business empire, particularly SpaceX, the rocket manufacturer aiming to launch the largest initial public offering in history in June. Thursday's filing also shed light on inter-company transactions, revealing that Tesla generated over half a billion dollars in revenue last year from sales to other Musk-run companies.
The bulk of these sales, approximately US$430.1 million, came from business with xAI, Musk's artificial intelligence startup, as first disclosed by Tesla in January. The automaker additionally reported US$143.3 million in revenue from SpaceX. Bloomberg News reported last month that SpaceX likely purchased more than US$100 million worth of Cybertrucks, the company's slow-selling electric pickup, in the fourth quarter of last year. Tesla did not immediately respond to requests for further details.
Market Reaction and Stock Performance
Tesla shares rose 0.5% in pre-market trading Friday in New York. The stock has declined 15% this year, underperforming the S&P 500 Index, which has risen more than 5% over the same period.
Caveats to the Compensation Figure
The disclosure of Musk's eye-popping pay came with significant caveats. Tesla noted in the filing that there may be a "significant disconnect" between the reported total compensation and the value actually realized by Musk in a given year.
Several factors contribute to this disconnect. The unprecedented pay package awarded last year consisted entirely of equity award grants, structured so that Musk will only benefit if Tesla's stock price soars and the company achieves various operational milestones. Since Tesla did not meet any of the market value or operational targets set last year, Musk's realized compensation was zero. He has not drawn a salary from the company for years.
The US$158 billion figure includes the maximum grant date fair value attributed to the award Musk received last year, assuming all performance conditions will be met. Tesla reported that fair value at approximately US$132 billion. The remaining US$26 billion represents the grant date fair value of an interim award approved by Tesla's board in August, which Musk forfeited in April of this year due to the reinstatement of a 2018 compensation package.
