I have selected Tesla to continue my discussion posts. Tesla is using their stock options for performance-based awards (Tesla, Inc., 2019). The 2019 Plan provides for the granting of stock, restricted stock, RSUs, stock appreciation rights to employees, directors and consultants. The options are exercisable over a maximum period of 10 years from their grant date and vesting terminates when the employment or consulting relationship ends (Tesla, Inc., 2019).

In December 2019 the companys proceeds from exercises of stock options and other stock issuance was $263 million.

If I was a retiree to earn extra money above dividends, I would sell my shares if and when the stock price increased above the strike price initially paid for the options.

Required:

Critique the ABOVE view on mitigation strategies and offer a counterpoint or additional resources the students can use to expand their understanding.