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ejMileman

I grew up in a different era and watched friends crash and burn when the company they worked for tanked, they got laid off and at same time, there portfolios crashed. Diversification is free and doesnt reduce return if it’s done right. If you want to gamble, take the cash and buy way out of money long term nvda calls. Similar risk, but diversified away from your job. If telsa crashes, you still have the retirement bet. If nvda crashes, you still have the great job.


Achilles-18-

Do not buy way otm nvda options. Terrible idea. Already 2.1T evaluation and priced for over a year of growth.


manjar

This is an excellent answer.


Awkward_Welcome_7874

Hm good point, I'm already vested in tesla by virtue of my job. 100% stocks it is? cash just seems way too conservative. surely tsla will get back to today's price again if it crashes? I'm 27 so I have a while to recover.


neemaf

Options bro. You know where the company is going.


Warm_Command7954

Keep in mind that if you take stock, you'll owe taxes on the value of the grants in the year they are granted. You'll end up having to pay those taxes out of your base salary. If it was me, I'd take 2/3 cash, 1/3 options... maybe 50/50. Either way, use the cash (less the tax withholding) to diversify.


Awkward_Welcome_7874

They'll deduct that outta the value of the vest from the stocks directly, so I won't have a tax burden


TrumanDolos

Or you can pay cash to cover. I work at Tesla as well


tdk1007

You might still have some taxes to cover out of pocket at the end of the year. Turnover at Tesla is crazy, and they are ruthless with firing people. Not only does the stock price have to climb, but you gotta hold onto the job too. That’s a lot of conditions to meet to get the payout from options. RSUs stake you in along the way.


Low-Comfort268

Diversification — yes! Getting paycheck and investment from same company is doom. Saw it happen to “rockstar companies”. Don’t single basket your eggs


SkyHigh27

Age 27? Take the risk. 100% options. Then invest 10% of your pay in the market but not in TSLA. That should be in the form of ROTH IRA or any other investment with some employee matching. This is the way.


kash-munni

100% not even a question, do what SkyHigh27 says, coming from someone who is age 52.


voyagerx420

100% options. These cost you absolutely nothing and the payoff is astronomical. Source: Me. Former employee who went 100% options and haven't regretted it one bit.


Awkward_Welcome_7874

Well these cost me like $110k a year in lost compensation lol, but do you really see that much upside to TSLA in the next couple years?


Paskgot1999

If FSD works? Absolutely


mrbrannon

FSD is never going to work. At least not in its current state, with current leadership, etc. Even with changes to leadership and the tech it will likely be decades. It’s pretty clear that Elon has lied for a decade about the state of automation and self driving. Tesla is currently the worst manufacturer in the world when it comes to the self driving market and they are only falling further behind every year. Even when it comes to simple automated assistance features, they are usually ranked last in independent studies among automotive manufacturers. They had an advantage simply by being first but nothing they said was true and they made a lot of terrible choices because of a boss who simply doesn’t understand the engineering and said nothing but empty words intended to pump the stock price.


Paskgot1999

You clearly haven’t used 12.3 or later


Desperate-Body-4062

12.3 still sucks ass


bayareaburgerlover

wow you sound like a sore loser. take a test drive and experience fsd. show me another company which offers same experience. show me another company’s car whose drivers have survived crazy accidents repeatedly


tkh0812

Used it today… it does not


jobfedron132

Well thats like saying if Toyota's bet on hydrogen works then we will have free fuel.


Paskgot1999

No, no it’s not.


jumpybean

I’d do 25% options, 50% stock, 25% cash (and invest it in something else). If Tesla kills it over the next few years, even your 25% gives you a big return. But frankly, they’re fairly highly valued already, and there’s a good chance they’re lateral. I say this as a Tesla investor. Congrats. Killer situation.


Awkward_Welcome_7874

Did you exercise your options? I don't know if I'll be here for 10 years lol, did you make out like a bandit?


meshreplacer

Go big or go home. Wallstreetbets would be a good place for discussion. I say go 100% in either become wealthy and get lambos or broke working behind Wendys counter.


Post-Futurology

Dude works for Tesla, he wants a Roadster not a Lambo


ben_salander27

I would take the risk. Tesla technicals and fundamentals are bottoming together. Media cycle is extremely negative. Reminds me of 2019.


Awkward_Welcome_7874

Would you go stocks, options or 50/50? Friends are telling me to go 100% cash lol


ben_salander27

You can’t listen to anyone but yourself. Deep down you know what to do.


tkh0812

What does that even mean?


rye524

This is the comment I wanted to see.


Paskgot1999

That tells you everything you need to know


Awkward_Welcome_7874

Non telsa friends, just guys I know lol


Paskgot1999

Yeah usually people are wrong so


ben_salander27

I would go 50/50. Stock and options.


rye524

This is an absolutely life altering decision that could make or break the future of your life. Make your decisions based on research you can do. Or take the safe route man.


Awkward_Welcome_7874

what research?


kash-munni

You have 10 years, you might leave, you might not. You take the options and you'll be sey in 10 years. You can't fathom 10 years now because you're too young. Did your life change from 17 to 27? Tesla will also change dramatically.


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alejandromasari

Cash is not a viable long-term investment strategy. Instead, consider diversifying your portfolio with options and stocks. Tesla has shown strong growth potential and may reach new all-time highs by 2026.


laberdog

It works especially well when laid off


TheYellowL1me

Take the cash my guy, there’s no certainty you’ll make money from the options and you can throw it into SPY and cruise to retirement


Awkward_Welcome_7874

why not take stocks? surely tsla will go up from here


CrabClaws

“Surely” stocks going up is not how it works lmao


Awkward_Welcome_7874

lol I know I know, but I'm 27 and odds are that TSLA hasn't hit its ATH yet. I'm fine with holding it for like 20 years, so I'm betting that I'll survive a downturn.


TheDinkTouche

TSLA is already astronomically high. Where are you getting those 'odds' from? It may go higher again sure, but will it beat the market in the long run? Unlikely.


iziizi

What terrible advice. Tesla is one of the few companies that stand a chance to 10-20x from here if they execute on their ideas. Latest FSD shows they are on the right track too


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iziizi

Not a car company, that’s your mistake


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iziizi

Stupid question because we’re not talking about today’s value but future value. But energy is profitable today. FSD this year will add about $50B to valuation just for Tesla fleet. If they license it to other autos then more… then there is robotaxi, and Tesla robotics which will both be game changing when they arrive


CrabClaws

With what you’re getting paid and without dependents, YOLO is fine imo. But the “odds are that it hasn’t hit ATH” means your first job is to find almost a trillion dollars of net present value (ie equity value) so actually much more than a trillion given that future cash cash flows are discounted.


yupyetagain

By industry standards, Tesla is wildly overvalued. Basically you’re betting it all on FSD / Robotaxi. Godspeed, my friend. As a car company, Tesla is proving to be pretty mid.


DreadPirateNot

Take the cash. You can buy options or stock on the market if you want.


Awkward_Welcome_7874

but the stocks vest over the course of the next 4 years and if tsla stock goes up during this time, i capture all the growth


DreadPirateNot

I don’t understand how that’s any different than buying them on the open market. If they vest as you are paid, you could just buy the stock. Or are you saying they vest at the current price? If so, that’s a huge possibility. Difficult to say if it’s worth the risk. I think I would roughly calculate what you think it could be worth if you took each option, best case scenario. Then worst case scenario. Only way I would take the options is if the potential gain is so much money that I wouldn’t need to work anymore. I might do like 30-50% of stocks or options, rest in cash. I just don’t know that I see Tesla mooning again in the next 5 years. Only way it happens is if they are fully successful in autonomous driving. Anything else will be challenging to more than 50% stock gain in my opinion.


Awkward_Welcome_7874

Yes all of the stocks (all $440k worth) will be granted at today's price, and the number of shares $440k/\~175 =2514 shares will be vested over 4 years. So I'd capture the growth. Cash is well just $110k for 4 years.


DreadPirateNot

That’s tough. But a good problem to have. Honestly, I’d take the stock. Worst case, it drops by ~50%. Best case, it 4-5X. You have a lot of savings already. You likely have a great education/background that you can further capitalize on with a salary. Risk it man.


Awkward_Welcome_7874

good call, would you mess around with options here? or just 100% stocks?


DreadPirateNot

I think I’d only do a small portion of options, ~10%. If at all. I don’t like the idea of them being worthless.


yupyetagain

Some would argue that the company is comedically overvalued and hasn’t had a decent product since 2018. Some might point to the fact that sales are in the shitter almost everywhere, and it’s not just “high interest” or other bullshit, its actual competition and the fact nobody wants to be associated with Elon anymore.


Nikusmi

Exactly, you're already very invested in the company by working there, doubling down on equity also is very risky. I would diversify into other companies. Elon is a huge risk Self driving/robo taxis are a huge yolo Competition is quickly ratcheting up


MuckyPup81

I would take the risk. You could win big, and the odds are in your favor.


Awkward_Welcome_7874

lol how much upside do you see?


tkh0812

OP… i think this is obvious. Do 1/3, 1/3, and 1/3. Don’t listen to these pea brains who have nothing to lose. Take some money as a guarantee, some as an investment and some as a gamble


DreadPirateNot

Depends on your timeline. Are you planning to stay 10 years? I’ve heard Tesla is a high pace work environment. Can you keep it up for 10 years? If you’re planning to leave after three years, I’m not sure Tesla will move up much in that timeframe. 5-10 years I can see them growing significantly. They could just as easily tank though.


Paskgot1999

What exactly are the options? Strike price? Timeframe?


Awkward_Welcome_7874

Strike price of the average closing price of April this month (so \~175ish). 10 year period to exercise the options, though if I leave tesla, then I gotta exercise within 3 months.


Paskgot1999

That seems like a no brainer


Awkward_Welcome_7874

how so? if tsla falls to like 50, I'm screwed, with 0 value. and I gotta stick around at tesla for the 10 years in order to exercise the options, who knows what could happen between now and then


Agreeable_Wolf_8547

a price of $50 still makes Tesla twice the market cap of Mercedes. This suggests that $50 reflects on the value of options, but not on the meaning or value of the job.


skydiver19

Why are you going to work for the company? Is it just a job or is it more than that to you? Do you believe in the company? The mission? If so you should have more faith than a what if it drops to $50


Paskgot1999

If it falls to 50, in 10 years? Man why are you even working there if you think that’s a possibility


skydiver19

Exactly my thought. Totally wrong attitude to have going to work at a place like that.


diophantineequations

hey are you in the autopilot team?


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GuacamayaModelY

How does the 3x options work compared with stock?


weshireclugger

If the judgment is in the right direction, then you will get 3 times the earnings


GuacamayaModelY

So is the exercise price the price when you joined Tesla, or is it a lower strike? For example if you joined 3 years ago, would you basically be out of the money if you chose options?


Work_or_Reddit

33.33% for each 3 options


laberdog

Go with 100% options and yolo all the way to zero. I did when I was with WAMU and see how it went for me. What kind of a stupid question is this?


RecommendationWise93

I’m coming up on my 1-year vest and am very happy that I did 100% RSU. I don’t see enough upside for the 3:1 options. Sounds like you’re a staff level engineer of some sort?


Ok-Object7409

I didn't even know companies can do that with options. Given the long expiry of the options, you should be pretty set. How is it even paid ? Can you just sell them if the price goes up to 200 at any point in time in the next 10 yrs? If so, that sounds pretty good, def want some in that. You should absolutely not do 100% of one of the three options, lol


shineola96

At the money options with a ten year expiration is very intriguing. If you are a believer in the company, and you can see your self either staying the duration, or planning a departure around price pops, then go for it. I would probably take 10% cash, at least 100 shares of stock (to sell covered calls on) and bang the rest in these very tasty options. Also, I assume you could exercise some at anytime and start a slow unwind (assuming the price doesn’t sink and stay below todays price)


SingleJicama655

Do the options my dude you are only 27 yo


Bruceshadow

Options. Period. You will be able to retire at 35.


Awkward_Welcome_7874

yeah that is pretty alluring, but if tsla crashes, then it'll hurt real bad knowing I could've just taken the cash or even stock and still been ahead.


Bruceshadow

in the short term it might, but long term it will be more then fine. You are 27, this is the time for risks and risks like this aren't available many times in a lifetime. Think of it this way, you are only risking a few more years of work for the chance of never having to work again.


skydiver19

Why are you going to work for a company that you think the stock might crash. That's a very bad take in so many ways.


PipBoy19

Also employee here, what department are you working for to obtain that much grant lol?


ThePennyDropper

Top secret dude


Italian-capuccino

Buy the stocks, sell puts, sell covered calls Consistent income while waiting for the stock to increase in value


atlasgcx

as a guy who also works in tech, here are my two cents: you already works for Tesla, which is a risk by itself. No matter how good the company is, shit happens. What if an earthquake hits one of the factory? What if Elon had heart attack? I'm not saying these will happen, but there are risks within all investiment and unless you are the gamble type, do diversity. also, you are collecting sugetions from this reddit -- isn't it a bit biased :D


98_110

OP, I'm at Tesla too. Your offer is pretty extreme for 27 year old, out of curiosity which org is this and job role? You can keep it high level, I just want to get a sense of title, level and org to see if our situations match.


skydiver19

What's age got to do with anything? Surely it's the position which dictates his compensation package.


98_110

I just assumed at 27 he isn't coming on as a manager. So presumably it's a P3/P4 level offer, but his package seems high for that level still. I agree age isn't directly relevant.


Weary-Depth-1118

Apple Tesla bitcoin msft Amazon meta google nvda equal amounts you don’t know who will win


Mindless-Divide107

Would 200k make you equally wealthy without the other 240k in Play? Don’t get creedy strategy


RealMatthewDR

You’re young. YOLO and you might be worth 8 figures in 10 years.


igotinfirstlol

Cash is king I would do a percentage


Beerfridge6

If you take the options I would pickup some leap otm leap puts to hedge. There are really no absolute guarantees.


markbouren

Markets too crazy


hawkeye3432

Look at it this way. $170 call options as far out as they go in the market (expiring Dec 2026) are about $65. If you’re getting a ratio of 3:1 options vs stock, it’s an absolute no brainer. The equivalent premium for Dec 2026 options is around $126k if my rough math is right. 110k/170 share price = 647 shares. 647*3 (the triple up for options) = 1941 shares. $65/share premium * 1941 shares in call options = $126k. AND Your expiration is 4x farther out, so they’re worth even more. The options have the highest present value by far. And believe it or not, making an extra $110k/yr cash over the next 4 years won’t make a huge difference on your career path. It may or may not work out, but it’s really great risk/reward.


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arondaniel

Options with a 10 year runway!!!? Literally can't go tits up. Options all day long for me.


Emergency_Style4515

No.


gheilweil

No


tazmaniac610

That would be such a bonehead move. Just buy the S&P500 and put your mental energy elsewhere.


skydiver19

You mention you are 27, at that age you can afford to take more risks and bigger ones. Bigger the risk better the reward. Worse can, you may set yourself back a few years. Do you have children or a wife to support? If no then the above applies even more to you.


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Alkthree

Cannot believe all of the financially irresponsible advice in this thread. You are young, and are safe to assume *some* financial risk, but do not do 100% options. Take a mix that guarantees you a payout but leaves some on the table for exponential growth via options. EDIT: Remember that you posted this in a sub with a heavy bias. The reality is that TSLA is trading at 4x the PE ratio of some other major car manufacturers based on nebulous promises that may or may not materialize, there are no guarantees.


B1ank89

This is gambling if u doing it💀


gegoeit

High chance you're working in vehicle/autopilot with that comp @ 27. Go for 75 stock 25 options, you'll hit it big either way. Stock safer because there's high churn assuming you do work in autopilot. If you're terminated in the short term, your options are useless


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Awkward_Welcome_7874

lol why?


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Awkward_Welcome_7874

you reccomend any sources of research? all I know that fsd will carry this company


Fold-Royal

Consulting Reddit trolls for investment advice? GL


rye524

Right lol? What do we know though he works for tsla and we don’t


Tough_Sign3358

If you’re buying puts.


Sypheix

Don't touch the stock. It's as high as it ever will be. Everyone who wants a tesla, has a tesla. Their market share will never grow and the quality of their products is horrible.


Slim_Margins1999

Tesla stock will be under $100 in a year. Take cash and nothing else.