- Elon Musk claims a combined 45% federal and state tax rate applies when he exercises and sells stock options, which he said could lead to “trillions in taxes” over time.
- His Tesla compensation package, valued at $158.4 billion for accounting, could be worth up to $1 trillion if the company hits ambitious long-term milestones.
- SpaceX has also reportedly approved massive equity awards for Musk tied to future goals, including establishing a Mars colony and launching orbital AI data centers.
Elon Musk drew scrutiny on Wednesday after highlighting his significant tax burden, which comes as his massive, performance-based compensation packages at Tesla and SpaceX return to the forefront. The CEO said on X he pays a combined 45% income tax rate when exercising and selling stock options, claiming he paid more than $10 billion in taxes in one year.
Musk added that a 40% estate tax would apply after his death, leading to his claim of potentially paying trillions. Consequently, his comments spotlight billionaire taxation concerns as Tesla recently disclosed fresh details of his long-term compensation at the automaker.
The filing showed Musk’s 2025 compensation package was valued at $158.4 billion for accounting purposes. However, the broader shareholder-approved package could be worth up to $1 trillion over the next decade if Tesla hits aggressive targets like a $8.5 trillion market cap and 20 million annual vehicle deliveries.
Musk currently holds 717.1 million Tesla shares, representing a 20% stake in the company. Meanwhile, SpaceX has reportedly approved a separate equity-based compensation structure for Musk tied to future milestones, including establishing a permanent Mars colony.
The broader business ties across Musk’s empire are also growing, with SpaceX and xAI making significant payments to Tesla for vehicles and battery systems. Meanwhile, Tesla shares slipped nearly 1% in overnight trading, trimming regular session gains that saw the stock jump more than 2% to close at $398.73.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
