Tesla CEO Elon Musk is encouraging Tesla employees to strive for excellence by hinting at a new stock option grant program for high-performing individuals.
According to an internal memo seen by Reuters, Tesla is contemplating offering stock-based compensation to exceptional employees, who will be selected based on their performance.
The memo stated:
“Over the next few weeks, Tesla will be doing a comprehensive review to provide stock option grants for exceptional performance. 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.”
Last year, Tesla did not provide merit-based stock awards as it focused on strengthening its financial position. Despite facing challenges such as price cuts and tighter margins in 2023, Tesla aimed to maintain its leadership in the U.S. electric vehicle sector.
While employees typically received salary adjustments and stock grants based on their yearly performance during an annual review, Tesla refrained from awarding these last year. However, it did offer stock “refreshers” to employees who completed their four-year vesting cycle.
Stock option-based compensation could offer long-term financial benefits to employees, as Tesla’s stock has surged over 1,100 percent in the past five years.
Tesla and Elon Musk have regularly expressed gratitude to employees for their hard work and contributions. This new program is expected to motivate employees further, potentially leading to increased productivity and daily successes for the automaker.