By Joey Klender

Posted on June 18, 2024

Elon Musk is pushing Tesla workers to do “exceptional” things at the company by hinting they may qualify for a new stock option grant program that will be awarded to employees that perform well.

An internal memo seen by Reuters shows that Tesla is considering giving high-performing employees stock-based compensation, but they will have to work hard and be chosen by the company.

The memo said:

“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.”

Tesla did not pay merit-based stock awards last year as the company attempted to bolter its financial state. While it remained secure, Tesla fought price cuts and tighter margins in 2023 as it did what it could to remain the leader in the U.S. electric vehicle sector.

Employees typically received both salary adjustments and the stock grants based on their yearly performance during an annual review. Although Tesla did not award these last year, it still gave stock “refreshers” to those employees who reached the end of their four-year vesting cycle.

Stock option-based compensation could lead to long-term financial rewards for employees. Tesla stock is up over 1,100 percent in the past five years.

Tesla and Elon Musk have routinely thanks employees for their hard work and efforts, but this program is sure to potentially get more production out of those who truly contribute to the automaker’s day-to-day successes.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Elon Musk pushes Tesla workers to do ‘exceptional’ things with new stock option program

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