According to two sources who reviewed internal memos, Tesla CEO Elon Musk informed employees on Monday that the electric vehicle manufacturer is planning to offer stock-based rewards to high-performing employees.
This plan was proposed just days after Musk received shareholder approval for his $56 billion compensation package, which includes stock options, and two months after he announced a reduction of over 10% of global workforce. These layoffs are measures to address slowing demand for electric vehicles and increasing price competition from Chinese rivals.
According to the two sources, located in China and the United States respectively, Musk stated in an email, "In the coming weeks, Tesla will conduct a comprehensive review to offer stock options to exceptionally performing employees." They requested anonymity due to the internal nature of the memo.
The email also mentioned, "The company will continue to implement a plan to award instant stock options to anyone making outstanding contributions to the company. Thank you for everything you do for Tesla's success."
Tesla has not yet responded to Reuters' request for comment.
According to sources familiar with the matter, Tesla did not issue performance-based stock rewards to employees last year. The company's profit margins were impacted last year as a result of aggressive price-cutting strategies to revive demand and fend off competition.
Since the start of 2024, Tesla's stock price has dropped 25%, and the company has already warned of a significant slowdown in sales.
