Tesla CEO Elon Musk told employees Monday that the electric vehicle maker is working on stock-based compensation for high-performing employees, according to two people who reviewed an internal memo.
The plan comes just days after Musk won shareholder approval for his $56 billion compensation plan, which consists of stock options, and two months after announcing staff cuts that affected more than 10% of the force Tesla’s global work, facing slowing demand for electric vehicles and rising prices. competition from Chinese rivals.
“In the coming weeks, Tesla will conduct a comprehensive review to provide stock options for exceptional performance,” Musk said in an email, according to the two people who reviewed it and are based in China and the United States, respectively.
“There will also be an ongoing program to grant one-time options to anyone who does something notable for the company. Thank you for all you are doing to make Tesla a success,” the email read.
Tesla did not immediately respond to a Reuters request for comment.
Last year, Tesla ignored merit-based stock awards for employees, people familiar with the matter said. Tesla’s margins have been hit in 2023 by the company’s aggressive price cuts designed to revive demand and fend off competition.
Since the start of 2024, Tesla shares have fallen 25% and the electric vehicle maker has warned of a sharp slowdown in sales.
Source: Terra
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