Tesla CEO Elon Musk's 2025 compensation dwarfs average worker pay amid profit decline
Elon Musk received compensation equivalent to more than 2.5 million times the average Tesla employee's pay in 2025, while the company's profits fell sharply, according to the AFL-CIO executive pay report.
The AFL-CIO’s annual executive paywatch report shows Elon Musk’s 2025 compensation at roughly 2.5 million times the average Tesla worker’s earnings. Musk’s pay for the year was reported at $158 billion, exceeding Tesla’s total revenue of $94 billion and its historical cumulative profits. The report notes that the average CEO-to-worker pay ratio across S&P 500 firms is typically around 300:1; excluding Musk, the ratio for the 2025 sample was 312:1, while including him raised the average to 5,387:1.
Tesla’s financial results for 2025 reflected a 3% decline in revenue and a 61% drop in GAAP profit compared with the previous year, marking the company’s first year-over-year revenue decline. The report attributes the widening pay gap to Musk’s compensation package, which has set a new record for CEO pay.
"The data highlight a significant disparity between executive compensation and worker wages, especially when a single outlier such as Musk is included," the AFL-CIO statement said.
Analysts observe that Musk’s compensation structure, which includes multiple large awards, has amplified the overall pay ratio for the sample of companies. The report excludes Musk’s figure to provide a clearer view of typical CEO-to-worker pay differentials.
The findings come as Tesla faces scrutiny over its profitability and strategic decisions, with the company reporting lower earnings and a decline in sales growth after years of expansion.