Elon Musk rewards Tesla China chief with massive stock grant under strict conditions

Elon Musk has approved a major incentive package for a senior Tesla executive in China, offering stock rewards valued at more than $230 million, but only under strict long-term conditions.

The electric vehicle (EV) maker disclosed in a recent US stock market filing that it has extended the contract of its senior vice president for China, Zhu Xiaotong, for another five years. 

As part of the agreement, Zhu has been granted 520,021 restricted stock units, with an exercise price of $435.8 per share.

Based on Tesla’s closing share price of $447.2, the stock award is valued at roughly $233 million. 

However, Zhu will only receive the full benefit if he meets two key conditions set by the company.

First, the restricted stock units will fully vest on March 5, 2031, meaning Zhu must remain with Tesla for the entire five-year period to unlock the reward. 

Second, the final value of the incentive depends on Tesla’s stock performance over the same timeframe, effectively linking Zhu’s compensation to the company’s long-term market success.

On the sidelines, the automaker briefly listed a more affordable version of the Tesla Model Y on its Chinese website, before later updating the page.