Elon Musk plans stock rewards for outstanding Tesla staff

Elon Musk , Tesla CEO, has announced plans to grant stock options to the company’s high-performing employees, according to an internal memo reviewed by sources. This move came shortly after Musk secured shareholder approval for his $56 billion pay plan, which was also based on stock options.

“Over the next few weeks, Tesla will conduct a comprehensive review to provide stock option grants for exceptional performance,” Musk stated in the email. He added, “There will 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.”

This announcement follows recent job cuts impacting over 10% of Tesla’s global workforce amid declining demand for electric vehicles (EVs) and increased competition from Chinese manufacturers. The company has been under pressure as its margins suffered from aggressive price cuts to boost demand, a Reuters report read.

Employees welcomed the news, seeing it as a positive step towards recognizing their contributions during challenging times. “It’s great to see the company acknowledging our hard work,” said one employee, who wished to remain anonymous. “Stock options can be a significant incentive for us to keep pushing forward.”

The company’s stock has dropped 25% since the beginning of 2024, with Tesla warning of a significant slowdown in sales. Despite these challenges, Musk’s email aims to boost morale and incentivize exceptional performance among the workforce.

Read more on Elon Musk’s $56 bn pay package approved amid Tesla’s tough year