Tesla abandoned performance-based stock compensation for employees last year.
 "Elon Musk plans to offer stock compensation to top Tesla employees")
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Electric-car maker Tesla Inc. Chief Executive Officer Elon Musk told employees on Monday that the company is working on introducing a stock-based compensation plan for its top employees, according to two people who have viewed the internal company memo.
The plan was announced just days after Musk received shareholder approval for a $56 billion compensation plan that includes stock options, and two months after he announced job cuts affecting more than 10% of Tesla's global workforce in the face of slowing demand for EVs and intensifying price wars with Chinese rivals.
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“Over the next few weeks, Tesla will be conducting a comprehensive review of its stock option awards for outstanding performance,” Musk said, according to two people in China and the United States who reviewed the email, asking not to be named because the memo is internal to the company.
“We will also continue our program to award Spot Option Grants to those who do something great for the company. Thank you for all you do to make Tesla successful,” the email said.
Tesla did not immediately respond to a Reuters request for comment.
Tesla stopped offering performance-based stock compensation to employees last year, according to people familiar with the matter, and its profit margins were hit last year by the company's aggressive price cuts to revive demand and stave off competition.
Tesla shares have fallen 25% since the start of 2024, and the EV maker has warned of a sharp slowdown in sales.
