Business

Elon Musk Plans Stock Option Grants To Tesla’s High-Performers, Sources Say

Tesla CEO Elon Musk told employees on Monday that the electric vehicle maker would work on stock-based compensation for high-performing employees, according to two people who reviewed an internal memo.

The plan came just days after Musk won shareholder approval for his $56 billion pay plan consisting of stock options and two months after he 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.

“Over the next few weeks, Tesla would be doing a comprehensive review to provide stock option grants for exceptional performance,”

Musk said in an email, according to the two people who reviewed it and are based in China and the U.S., respectively. They declined to be named as the memo is for internal use.

“There would 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 said.

Tesla last year skipped merit-based stock awards to employees, people familiar with the matter said.

Tesla’s margins took a hit last year from the company’s aggressive price cuts aimed to revive demand and fend off competition.

Since the start of 2024, Tesla shares had slumped 25% and the EV maker warned of sharp slowdown in sales.

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