Elon Musk's Tesla plans stock based compensation for high performers

Updated : Jun 18, 2024 14:28
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Editorji News Desk

Tesla CEO Elon Musk on Monday told the employees that the firm is working on stock-based compensation for high-performing employees, reported Reuters. As per the report, the electric vehicle maker is also planning to award spot option grants for anyone who does something outstanding for the company.

"Over the next few weeks, Tesla will be doing a comprehensive review to provide stock option grants for exceptional performance," Musk said in an email as reviewed by Reuters. "There will also be an ongoing program to award spot option grants for anyone who does something outstanding for the company. Thanks for everything you're doing to make Tesla successful," the email added.

Stock compensation for employees

This comes just days after Musk won shareholder approval for his $56 billion pay plan consisting of stock options. Two months earlier Musk had announced job cuts affecting more than 10% of Tesla's global workforce in the face of slowing demand for EVs and intensifying price competition from Chinese rivals.

As per Reuters, Tesla last year had skipped merit-based stock awards to employees. The electric vehicle maker last year announced aggressive rate cuts to revive demand and fend off competition. This hit the company's margin.

Similarly, Tesla's shares have seen 25% slump since the start of the year and the firm has warned of sharp slowdown in sales.

Also watch: Tesla slashes prices of EVs globally amid increasing competition

Elon Musk

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