Tesla 2012 Annual Report Download - page 130
Download and view the complete annual report
Please find page 130 of the 2012 Tesla annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120 -
121 -
122 -
123 -
124 -
125 -
126 -
127 -
128 -
129 -
130 -
131 -
132 -
133 -
134 -
135 -
136 -
137 -
138 -
139 -
140 -
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
 |
 |
Table of Contents
Fair Value Adoption
We adopted the fair value method on January 1, 2006 in recognizing stock-based compensation expense. Under the fair value method, we
estimated the fair value of each option award and Employee Stock Purchase Plan (the ESPP) on the grant date using the Black-Scholes option
pricing model and the weighted average assumptions noted in the following table.
The weighted-average grant-date fair value for option awards granted during the years ended December 31, 2011, 2010 and 2009 was
$17.43, $10.99 and $3.00 per share, respectively. The weighted-average grant-date fair value for ESPP granted during the year ended
December 31, 2011 and 2010 was $7.52 and $5.49 per share, respectively.
The fair value of the shares of common stock underlying the stock options has historically been determined by the Board of Directors as
there was no public market for our common stock. The Board of Directors has determined fair value of the common stock at the time of each
grant of options by considering a number of objective and subjective factors including valuation of comparable companies, sales of convertible
preferred stock to unrelated third parties, operating and financial performance, the lack of liquidity of capital stock, and trends in the broader
automobile industry. We have not granted stock options with an exercise price that is less than the fair value of the underlying common stock as
determined at the time of grant by our Board of Directors, with input from management. The fair market value of the underlying common stock
was determined by the Board of Directors until the completion of our IPO when our common stock was listed on an established stock exchange.
129
Year Ended December 31,
2011
2010
2009
Risk
-
free interest rate:
Stock options
2.0
%
2.0
%
2.2
%
ESPP
0.2
%
—
—
Expected term (in years):
Stock options
6.0
5.3
4.6
ESPP
0.5
—
—
Expected volatility:
Stock options
70
%
71
%
64
%
ESPP
59
%
—
—
Dividend yield:
Stock options
0.0
%
0.0
%
0.0
%
ESPP
0.0
%
—
—