I decided to accept an opportunity with Tesla and the recruiter is asking me split between RSUs & Stock Options (3 stock options per RSU) I'm new to this RSU/Option game, I understand that stock options are riskier but could offer a higher return. What do you recommend? Getting $175k over 4 years of equity
What’s the strike price for options
It only says that the strike price is the closing price of Tesla stock on the date of grant
Is the grant date once a year?
Which position is this for?
must be rsu... if you want to earn same from option, Tesla stock needs to be 660+
I calculated this for my best friend he also got same package as you
Cool, thanks for the advice
I think RSUs make way more sense. For Options to be beneficial at 3x, over RSU, the stock has to increase more than 50%. I wouldn’t bet a major chunk of my compensation on that happening!
Totally agree. Another thing to consider: if the stock goes down at all or even stays flat, the options would be totally worthless. On the other hand the RSUs are worth the full amount if the stock stays flat. If Tesla stock doubles then the options are worth 50% more than the RSUs. Taking the Tesla options instead of RSUs is a lot of risk for the potential gain.
Yup. Another way to look at it is, try figuring out the cost of 3x options in market today. I would suppose it would definitely be less than x RSUs.
Thanks for the advice
Given that you didn’t lost a strike price, I’m going to assume you don’t understand the relative risk and thus should go with RSUs.
It only says that the strike price is the closing price of Tesla stock on the date of grant
@Snut Ella, The strike price is the fmv on the day of the grant. That’s how stock options grant works to avoid tax liability on the employee during initial option vesting. You don’t know enough of this shit to be calling other people ignorant!
Option is good only if you expect the stock to go up significantly higher (I.e. 50%) On the other hand if the stock goes down or stays flat the RSU are still worthwhile, the option are *zero* Options are very high risk, I would not do it
Thanks! I'll go with the RSUs
What's the strike price of the options?
It only says that the strike price is the closing price of Tesla stock on the date of grant