[Edaily Marketin Reporter LEE GEON-EOM ] Market attention is focused on exit scenarios—specifically, how to monetize restricted stock units (RSUs)—as Motional, Hyundai Motor Group’s U.S.-based autonomous driving joint venture, has granted employees a cumulative total of 350 billion won in RSUs since 2020.

Interest in how these RSUs will be cashed out is intensifying, particularly as the commercial launch of driverless robo-taxis approaches by the end of the year. This is because the successful launch of commercial operations marks a turning point for Motional, allowing it to transition from an R&D-focused organization that burns through large amounts of capital to a profit-generating company. Given Motional’s closed structure as a limited liability company (LLC), attention is focused on whether measures such as the exercise of put options (the right to sell shares) or corporate restructuring to finalize compensation plans will be implemented.

According to industry sources on the 29th, various scenarios are being discussed as ways to convert the total $239.66 million (approximately 350.9 billion won) in restricted stock units (RSUs) granted to Motional employees since 2020 into actual proceeds. These include the individual exercise of put options, a corporate restructuring led by Hyundai Motor Group, and a long-term initial public offering (IPO).

Currently, the most realistic method of monetization is considered to be the individual exercise of put options by employees. It has been confirmed that Motional employees can monetize their granted equity by exercising put options. Given that Motional is an unlisted LLC and therefore cannot sell shares on the open market, the company has provided employees with the right to sell their shares back to the company upon meeting certain conditions. It is reported that the ratio of stock options to RSUs granted varies by employee, and the amount that can be liquidated through put options is calculated differently depending on factors such as the timing of the grant.

In fact, Motional has established and operates a separate equivalent option called “Class A-2 Units” to grant RSUs to its employees.

A review of the contract terms for some engineers reveals conditions designed to encourage long-term retention, such as: △25% of the granted compensation paid after 3 years of service (held for at least 6 months); △50% paid after 5 years of service (held for at least 6 months); and △full payment of the compensation after 9 years of service (no holding period requirement).

In addition, another scenario being discussed involves Hyundai Motor Group making Motional a wholly-owned subsidiary and conducting a lump-sum cash-out of employee shares. Previously, in May 2024, Hyundai Motor Group expanded its stake in Motional to over 86% through a large-scale rights offering.

It is speculated that during the upcoming restructuring of the ownership structure—which involves purchasing the remaining stake (approximately 14%) held by joint venture partner Aptiv—the company could buy out employee shares by valuing them at their fair market value as of a specific point in time. However, it is reported that Hyundai Motor Group maintains the position that it is not obligated to purchase Aptiv’s remaining stake unconditionally.

Another option involves demonstrating profitability (ROI) following the successful commercialization of robo-taxis within the year and then pursuing an initial public offering (IPO) on global stock markets, such as the U.S. Nasdaq, in the long term. However, this is contingent on completing the administrative procedures required to convert the LLC structure into a corporation (C-Corp) and on breaking the cycle of persistent losses to prove the company’s valuation. Given that Motional has not yet fully established its business viability, this scenario is considered the least likely to materialize.

Regarding this, a Hyundai Motor official stated, “The terms for granting Restricted Stock Units (RSUs) and stock options to Motional employees vary by individual,” adding, “It is common practice to tailor the terms to each employee’s individual capabilities at the time of employment.”