- By Mayukh Debnath
- Tue, 18 Jun 2024 05:10 PM (IST)
- Source:Reuters
Tesla Stock Option Grants: Tesla CEO Elon Musk has told employees that the company is working on offering stock-based compensation to high-performing employees, Reuters reported citing sources who reviewed an internal memo. The announcement came just days after shareholders approved Musk's USD 56 billion pay plan consisting of stock options.
Notably, in April this year, Musk announced job cuts affecting more than 10% of Tesla's global workforce in the face of slowing demand for electric vehicles (EVs) and growing competition from Chinese rivals.
ALSO READ: Centre Takes Action Against Electricity KYC Update Scam, Blocks 392 Mobile Phones To Curb Fraud
"Over the next few weeks, Tesla will be doing a comprehensive review to provide stock option grants for exceptional performance," Musk said in an email on Monday, according to two people who reviewed it and are based in China and the US, respectively.
"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," the email added. Last year, the EV maker skipped merit-based stock awards to employees, Reuters said in its report citing people in the know.
Tesla's margins witnessed a dip last year in the wake of the company's aggressive price reductions aimed at reviving demand and fending off competition. Since the beginning of 2024, the EV manufacturer's shares have fallen by 25 per cent and it has warned of a steep decline in sales.
(With inputs from Reuters)