Tesla Reportedly Increases Employee Salaries, After Quota Bonuses Axed

Tesla has reportedly canceled employee bonuses tied to quarterly delivery quotas and is instead raising base employee salaries to compensate, according to a report from Electrek.

However, the move away from delivery quota bonuses appears to reduce compensation for most Tesla employees overall.

Sales and delivery employees were previously offered a 25-percent bonus on their salaries for reaching store- and region-based delivery quotas each quarter.

According to some sources familiar with the matter, Electrek says Tesla is also doing away with delivery quotas for the sales and delivery staff, but is raising employee base salaries by 12.5 percent.

Unlike other automakers, Tesla uses a different distribution method through its ownership of stores across the U.S. rather than dealing with third-party dealerships.

This means Tesla more directly controls their compensation than other automakers for sales employees.

While Tesla had planned to reduce retail staff and shut down stores starting in 2019, the automaker kept most of its stores and expanded its retail program slightly.

The vast majority of Tesla employees have gotten their bonuses each quarter in the past two years, so the move is expected to reduce compensation overall, despite also reducing pressure on Tesla’s famous end-of-quarter delivery pushes.

Earlier this week, Tesla CEO Elon Musk shared that the automaker now supports 110,000 direct jobs and 500,000 indirect jobs.