| 2 minutes read

2 minutes read

Elon Musk Justifies Not Contributing To Tesla Employees’ Retirement Fund

| Published on February 13, 2021

Elon Musk is being in the news more often for his tweets recently. Musk has been a bull for some companies and is responsible for sky-rocketing their share prices overnight. It seems that Musk is using his social media handle in the best way possible.

Recently, Musk’s response to a tweet asking him questions regarding accusations of not paying retirement funds to Tesla employees has become a hot topic everywhere. With a large amount of wealth Tesla and SpaceX bringing every year, people wondered why they were not contributing to the employee’s retirement fund: 401k.

401K is the most common retirement account used in the United States of America.

Financial journalist Rob Kozlowski shared a report from @pensionnews and said “.@Tesla skips 401(k) match for a third straight year.”

Soon, NBC journalist Stephanie Ruhle, who quoted this Tweet and even tagged the owner Musk.“What am I missing? Tesla has paid @elonmusk billions & they are unwilling to match employee 401Ks? Do I have this wrong?” she asked.

Surprisingly, Elon Musk did not let it pass by and replied to the question posed by them. “Everyone at Tesla receives stock. My comp is all stock/options, which I do not take off the table. That’s what you’re missing,” Musk said.

Looking at Elon Musk’s response to the question, Stephanie Ruhle retweeted and praised the direct communication via Twitter with the business magnet and also enquired further asking the founder about the structure of the stock comp.

As reported by News18, in a 2020 article by Electrek, it is clear that Musk offers his employees stock choice as compensation. According to the website, it is not rare for tech companies to offer stocks as compensation, so Tesla isn’t doing anything illegal or unique. This is a practice not opted by any other automobile company.

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