Article talks about the individual income tax on NSOs in a misleading way. To clear things up, using IRS Pub 525 [1]: 1. As an "nonstatutory stock option that

Article talks about the individual income tax on NSOs in a misleading way. To clear things up, using IRS Pub 525 [1]: 1. As an "nonstatutory stock option that has a readily determinable FMV", the FMV of option would generally be income when it vests. Since it is compensation for services, it would be taxed as ordinary income. 2. When the FMV is included in income upon vesting as described in #1, the taxpayer doesn't have any income when they exercise the option to buy shares. 3. When the taxpayer sells the shares, they have capital gains, but their basis is the amount they pay for it plus any amount included in income previously. In other words, any income included in #1 is not taxed again. The assertion that there is somehow an individual income tax benefit seems unfounded. Since Tesla has been a publicly traded company at all relevant times, the mechanisms of the income tax shouldn't have changed. (Though of course, the amount of the compensation may differ...) [1] https://www.irs.gov/publications/p525 https://www.irs.gov/publications/p525