Tesla's Pay Strategy: Lower Salaries, Higher Stock Options

Tesla's compensation strategy involves offering lower base salaries compared to its tech and automotive peers, but compensates with substantial stock grants, attracting employees willing to bet on the company's future success. This high-risk, high-reward system is part of Elon Musk's approach to hire dedicated workers who are committed to Tesla's mission. The company's stock grants, which have made some employees millionaires, are a significant draw despite the lower base pay. However, Tesla's stock volatility raises concerns about the sustainability of this compensation model.