Hi guys. Asking this for a friend who is not in the community. He recently got an offer from a company called Lucid Motors in California. Apart from some base and relocation, they are giving him around 6k stock options. Since neither of us understands stock options that well, do you think stock options are good for someone joining a company that may be going public soon? #lucidmotors #tesla #google #amazon #zoox #waymo #stock #ipo #rsu #rivianautomotive
6k options? $6k worth of options? What is a share currently valued at? Options are great if you’re confident the company value is going up. They’re cheaper than giving actual shares, meaning the company is able to offer more of them, meaning when the shares go up, you get a lot more money. If the company value is pretty flat, or worse goes down, those options are worthless. If you had gotten real shares, you’d at least still have the value of the shares.
These are 6k units of stock options
The question you have to ask the recruiter is, what’s the strike price and what’s the most recent fair value estimate? Then do 6000*(fair value - strike). That’s how much money you get assuming ipo happened tomorrow. If valuation increased before/after ipo, you get more money.
is your friend not going to lucid motors if some internet peeps say stock options are bad?