You can be underwater on RSUs if you have a lockout or blackout period for when you can sell. Uber had this problem [0] after their IPO. If you factor in taxes

You can be underwater on RSUs if you have a lockout or blackout period for when you can sell. Uber had this problem [0] after their IPO. If you factor in taxes, you could end up owing more in taxes than the shares are worth (ex: vest price is $10/ea, taxes are $3/ea, current price you can sell at is less than $3 == underwater). I think Aurora employees were locked out for 180 days, but force to exercise options at IPO price. [0] - https://www.cnbc.com/2020/08/28/nearly-200-uber-employees-sue-over-stock-price-decline-since-ipo.html https://www.cnbc.com/2020/08/28/nearly-200-uber-employees-su... [1] - https://www.google.com/finance/quote/AUR:NASDAQ https://www.google.com/finance/quote/AUR:NASDAQ