SAN FRANCISCO, June 17 (Reuters) - Tesla CEO

Elon Musk told employees on Monday that the electric vehicle

maker is working on stock-based compensation for high-performing

employees, according to two people who reviewed an internal

memo.

The plan comes just days after Musk won shareholder approval

for his $56 billion pay plan consisting of stock options and two

months after he announced job cuts affecting more than 10% of

Tesla's global workforce in the face of slowing demand for EVs

and intensifying price competition from Chinese rivals.

"Over the next few weeks, Tesla will be doing a

comprehensive review to provide stock option grants for

exceptional performance," Musk said in an email, according to

the two people who reviewed it and are based in China and the

U.S., respectively. They declined to be named as the memo is for

internal use.

"There will also be an ongoing program to award spot option

grants for anyone who does something outstanding for the

company. Thanks for everything you're doing to make Tesla

successful," the email said.

Tesla did not immediately reply to a Reuters request for

comment.

Tesla last year skipped merit-based stock awards to

employees, people familiar with the matter said. Tesla's margins

took a hit last year from the company's aggressive price cuts

aimed to revive demand and fend off competition.

Since the start of 2024, Tesla shares have slumped 25% and

the EV maker has warned of sharp slowdown in sales.