Get All Access for $5/mo

Analysts Predict Elon Musk Will Earn Billions This Year Despite Not Taking Home a Salary From Tesla Despite his unusual pay structure, Elon Musk is predicted to make billions in 2022.

By Chloe Arrojado Edited by Jessica Thomas

FREDERIC J. BROWN | Getty Images

If predictions for Tesla are correct, CEO Elon Musk is going to have a really good 2022.

Analysts predict that Tesla will report strong financial results this year, adding billions to Musk's wealth. However, Musk's gains won't be seen in a salary or cash bonus from the company, as his wealth is earned based on stock awards.

Since 2018, the Tesla CEO has been on a payment plan based on a series of performance milestones Tesla must hit between now and January 2028. His 2018 pay package allocated 101 million split-adjusted shares that would be awarded to him in 12 equal portions, and he has already hit seven. Analysts are expecting Tesla to hit the remaining five financial targets in 2022 ⁠— which are cumulatively worth $36.3 billion.

Related: Dogecoin Jumps 15% After Elon Musk Says Tesla Will Accept the Meme Coin for Merchandise

However, Tesla's predicted success isn't a completely sure thing. The company's valuation can be questionable, as it is worth more than the 10 largest automakers in the world even though it posts significantly smaller sales than each of them. The company shot up to $1,200 a share after its fourth-quarter sales volumes were announced, but the stock is now trading at $919 a share.

"As you're seeing investors heading for the hills on risk, Tesla shares are caught in the storm," Wedbush Securities analyst Dan Ives told CNN.

The billionaire also suffered from major market sell-offs at the beginning of 2022. Musk has lost around $27 billion since the start of the year, and he is around $100 billion less wealthy than he was in November.

Tesla is set to post its financial results for the fourth quarter of 2021 and the full year after the market closes on Wednesday.

As of Tuesday morning, Musk's net worth is $236.7 billion.

Related: Tesla Driver Is First Person in U.S. to Face Felony Charges After a Fatal Crash Involving Autopilot

Chloe Arrojado

Entrepreneur Staff

Editorial Assistant

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Living

An Escape From Meetings and Spreadsheets: 70,000+ Retro Video Games

Unwind with classic games and streaming on one powerful emulator and streaming console.

Leadership

She Turned Her Pandemic Hobby Into a Full-Time Business. Now Her Heritage-Inspired Candles Are Sold in Retailers Like Nordstrom and Barnes & Noble.

Melissa Gallardo creates premium home fragrances in candle form, all inspired by her Latin heritage. As she continues to build and grow her business, these are the lessons she wants to share with other founders.

Growing a Business

This Chef Went From Dreaming of Michelin Stars to Building an Audience as a YouTube Star

Chef Sohla El-Waylly never set out to be a food content creator, but a series of events led her to her current career.

Business News

Who Is Luigi Mangione? UnitedHealthcare CEO Brian Thompson Murder Suspect Arrested, Faces Several Charges

Mangione, 26, has been charged in connection with the killing of Thompson.

Franchise

McDonald's Announces the Return of the Snack Wrap in 2025 — Here's What to Expect From Its Comeback

The decision comes after years of persistent customer demand for the portable snack, which debuted nearly two decades ago.

Side Hustle

At Age 15, He Used Facebook Marketplace to Start a Side Hustle — Then It Became Something Much Bigger: 'Raised Over $1.6 Million'

Dylan Zajac, now a 21-year-old senior at Babson College, wanted to bridge the digital divide.