Tesla's salary strategy emphasizes lower pay and larger stock grants for employees

Tesla's internal salary database reveals a pay strategy focused on lower base salaries and significant stock grants. Employees often accept reduced upfront pay for the potential of large future payouts, reflecting a high-risk, high-reward model. As of December 2021, Tesla's median base pay for full-time U.S. employees ranged from $35,000 to $324,000, generally lower than competitors. The company employs over 140,000 globally, but recent reports indicate a workforce reduction of more than 10%. Most employees receive stock grants, with many in engineering getting over $25,000. Tesla's stock performance has been strong, but volatility raises concerns about future compensation for new hires compared to earlier employees.