Tesla is planning to provide high-performing staff stock-based pay

Reuters reported on Tuesday that Elon Musk told staff members on Monday that the business is creating a stock-based remuneration plan for top performers, citing two people who had access to an internal document.

This action comes two months after Musk announced layoffs impacting over 10% of Tesla's worldwide staff due to decreased demand for electric cars (EVs) and growing competition from Chinese manufacturers. Musk recently approved a $56 billion compensation plan comprised of stock options.

According to the email, Musk stated, "Over the next few weeks, Tesla will be doing a comprehensive review to provide stock option grants for exceptional performance."

Additionally, there will be a continuing initiative to provide spot option incentives to individuals who do very well for the business. The email went on, "Thank you for all that you're doing to help Tesla succeed.”

It was disclosed by insiders that Tesla did not provide its employees merit-based stock awards in the previous year. The company's dramatic price cuts, intended to boost demand and stave off competition, negatively impacted its profit margins.

(Sources: investing.com, reuters.com)