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Tesla Announces Stock Option Grants For Top Performers
https://www.whatjobs.com/news/usa/us-employment-news/tesla-announces-stock-option-grants-for-top-performers
By Nithya Bose in Business News, posted June 19, 2024
Tesla CEO Elon Musk informed employees the company is developing a stock-based pay plan for high-performers, sources say.
This announcement follows Musk's recent approval of the $56 billion stock option pay plan by shareholders.
It comes two months after the company announced job cuts affecting over 10 percent of its global workforce.
The company faces slow demand for electric vehicles and increased competition from Chinese manufacturers.
Musk said: "Over the next few weeks, Tesla will be conducting a comprehensive review to provide stock option grants for exceptional performance."
He also mentioned an ongoing program to award spot option grants to employees demonstrating outstanding contributions.
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Musk added: "Thanks for everything you're doing to make Tesla successful.”
The memo, intended for internal use, was reviewed by people based in China and the US who requested anonymity.
Sources said last year, Tesla did not distribute merit-based stock awards.
Aggressive price cuts negatively impacted the company's margins to boost demand and counter competition.
Since the beginning of 2024, Tesla shares have declined by 25 percent, and the company has warned of a significant slowdown in sales.
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