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Tesla, Inc. granted 2,000 stock options to employees on January 1, with an exercise price of $1,200 per share. The fair value of the options

Tesla, Inc. granted 2,000 stock options to employees on January 1, with an exercise price of $1,200 per share. The fair value of the options on the grant date is $300 per option. Calculate the stock options expense for the year, assuming the options vest evenly over five years.

Calculation

Amount

Fair Value per Option

$300

Total Options Granted

2,000

Vesting Period

20% per year

Stock Options Expense (Yearly)


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