Tesla’s (NASDAQ:TSLA) CEO Elon Musk informed employees that the EV major is considering stock-based compensation for its high-performing staff, according to an internal memo accessed by Reuters. This move follows shareholders’ approval of Musk’s $56 billion pay plan, which includes stock options. In fact, the company has begun the process of legal recognition of the shareholder vote. After shareholders approved Musk’s pay, Tesla urged a Delaware judge to reconsider her ruling voiding Musk’s record compensation.
Tesla Will Undertake Review of Stock Options
Regarding providing stock options for Tesla’s high-performing employees, Musk commented in the internal memo that Tesla will be undertaking a “comprehensive review” of stock option grants for exceptional performance over the next few weeks. According to Reuters, Tesla had not granted merit-based stock awards to its employees last year.
Tesla is Struggling This Year
Shares of TSLA have slumped by more than 25% year-to-date. The company is struggling this year in the face of slowing demand for EVs and rising competition in China from local rivals. Tesla is struggling globally with slowing EV sales. In the first quarter, the company produced 433,000 vehicles and delivered around 387,000. This was below analysts’ expectations of 457,000 vehicle deliveries.
Is Tesla Stock a Buy or Sell Today?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on 10 Buys, 14 Holds, and nine Sells. The average TSLA price target of $176.96 implies a downside potential of 5.6% from current levels.
