Tesla reportedly skipping 2023 merit-based stock awards for employees

Tesla may not be giving this year’s merit-based stock awards for employees, reported Bloomberg.

For now, there’s no reason behind this massive change in the employee management program but the move was widespread.

Meanwhile, sources also revealed that the world’s largest EV maker is pushing new pay increases to the cost of living and adjusting employees’ base salaries.

Usually, Tesla conducts annual performance reviews and allots salary adjustments as well as merit-based stock grants for top performers.

Previously, these awards, in the form of restricted stock units (RSUs), were granted to employees with high performance.

These RSUs would vest over some time (four years) giving employees a financial stake in the company and aligning their values with shareholders.

Analysts believe that there could be some new shift in Tesla’s operational capacity or strategy which led to this new change. This might include economic concerns, focus on base salaries and refreshers as well as unionization efforts. Meanwhile, a clear answer is yet to come.

(source – Bloomberg)