Tesla eliminates employee stock awards for 2023 despite soaring stock prices
Tesla will reportedly not be granting merit-based equity awards to its employees in 2023, a departure from its usual practice. While employees will still receive cost-of-living increases and adjustments to their base pay, the absence of merit-based stock grants is a significant change. Tesla has traditionally used equity awards to incentivize talent and foster long-term commitment. The reasons behind this shift remain unclear, but CEO Elon Musk has previously expressed concerns about macroeconomic factors and high interest rates. Tesla has not commented on the matter.