According to Reuters, two individuals who have seen Tesla's internal memo revealed that Tesla CEO Elon Musk informed employees at an internal meeting on June 17 that Tesla is developing a stock-based compensation plan for high-performing employees.
In a recent internal email, Musk conveyed an important message to the employees: "In the coming weeks, Tesla will conduct a comprehensive evaluation and provide stock options as a reward to those who perform exceptionally well. Tesla also plans to grant spot options to employees who have made outstanding contributions. Thank you for everything you have done for Tesla's success." This information was disclosed by two individuals involved in the evaluation process in China and the United States, who chose to remain anonymous because the memo was for internal use only.
The announcement comes at a time when Tesla is undergoing a series of changes. Two months ago, Musk announced that Tesla would be laying off more than 10% of its global workforce. Meanwhile, Musk's $56 billion compensation plan, which consists mainly of stock options and is designed to incentivize him to better lead Tesla and boost the company's stock price, was approved by Tesla shareholders during this period.
Tesla did not immediately respond to Reuters' request for comment. Sources familiar with the matter disclosed that last year, Tesla canceled performance-based stock awards for employees due to significant price cuts aimed at boosting demand and fending off competition, which affected the company's profit margins. Since the beginning of 2024, Tesla's stock price has dropped by 25%, and the company has warned of a significant slowdown in sales.
