Tesla has recently granted Senior Vice President of Automotive, Tom Zhu, over 520,000 stock options as part of his compensation package. This move ties a significant portion of Zhu’s compensation to the long-term performance of the company, showcasing Tesla’s commitment to securing top talent.
The generous equity award was disclosed in a recent regulatory filing by the electric vehicle maker. According to a Form 4 filing with the U.S. Securities and Exchange Commission, Zhu received 520,021 stock options with an exercise price of $435.80 per share. These stock options will not fully vest until March 5, 2031, meaning that Zhu must remain at Tesla for over five years to realize the full benefit of the award.
Currently, Tesla’s shares are trading at around $445 to $450 per share. Zhu will only see gains in his equity award if Tesla’s stock price experiences a significant rise over the years. Even at today’s prices, Zhu’s stock award is already valued at over $230 million. If Tesla reaches the market cap targets set by Elon Musk’s 2025 CEO Performance Award, Zhu could potentially become a billionaire solely from this equity award.
Zhu joined Tesla in April 2014 and has played a crucial role in the company’s success. Initially leading the Supercharger rollout in China, Zhu later assumed leadership of Tesla’s China business, contributing to the localization efforts and development of Gigafactory Shanghai. His efforts have been instrumental in transforming China into one of Tesla’s key markets and production hubs.
In 2023, Zhu was promoted to Senior Vice President of Automotive, highlighting his importance as one of Tesla’s core global executives. Known as the company’s problem solver, Zhu was handpicked by Elon Musk to help ramp up vehicle production at Giga Texas. Tesla’s recent filing indicates that the company is securing its top talent as it embarks on its most ambitious era yet.
With Elon Musk’s vision for Tesla to become the world’s largest company by market cap and achieve unprecedented production levels, Zhu’s expertise and problem-solving skills will be invaluable. By locking in top talent like Zhu, Tesla is positioning itself for success in its next phase of growth.