The equity award follows a standard long-term vesting structure and is closely tied to Zhu’s continued service over the next five years
Tesla disclosed in a recent filing with the U.S. Securities and Exchange Commission that it has signed a new long-term service agreement with Tesla Senior Vice President and Global Head of Automotive Tom Zhu, extending his current contract by five years through January 2031.
Under the agreement, Tesla granted Zhu approximately 520,000 restricted stock units, valued at about $233 million at current market prices.
The equity award follows a standard long-term vesting structure and is closely tied to Zhu’s continued service over the next five years, with full vesting contingent on his employment through around 2031.
Zhu, aged 47, joined Tesla in 2014 and played a central role in building and ramping up the Shanghai Gigafactory, overseeing its rapid progress in capacity expansion, manufacturing efficiency and cost control.
The Shanghai Gigafactory has since become Tesla’s most important global manufacturing base.
In late 2022, Tesla CEO Elon Musk promoted Zhu to senior vice president in charge of Tesla’s global automotive business.
In July 2025, Zhu assumed full responsibility for the Asian business and oversaw Tesla’s global automotive manufacturing operations.
He is widely regarded as Tesla’s de facto second-in-command for operations and one of Musk’s most trusted executives.
Operational data underscore Zhu’s importance to Tesla’s global footprint. In 2025, the Shanghai Gigafactory delivered about 851,000 vehicles, accounting for roughly 52% of Tesla’s global deliveries of approximately 1.636 million units.
The facility also serves as Tesla’s largest export hub, supplying vehicles mainly to Asia-Pacific and European markets.
On December 10, 2025, the Shanghai plant rolled out the 4 millionth Tesla built in China, a Model Y L.
On December 31, Tesla’s 9 millionth vehicle globally also came off the line at the same factory, again a Model Y.
Tesla said in its filing that Zhu has played an irreplaceable role in executing its China strategy, improving production efficiency and controlling costs, and that the board views him as a key figure for the company’s next phase of growth.
The equity award aligns with Tesla’s broader strategy of retaining core executives through long-term incentives.
In November 2025, Tesla shareholders approved, with more than 75% support, a long-term performance-based compensation package for Musk that could be worth up to $1 trillion.
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