Gerber Warns Tesla Shareholders on Dilution After Meta’s $23.6B Buybacks
Ross Gerber of Gerber Kawasaki warned that Tesla’s stock-based compensation poses real dilution costs, citing Meta’s $23.6 billion share buybacks to offset employee equity. Tesla has reserved nearly 60 million shares for employees and 208 million shares for Elon Musk, contributing to over 3.7 billion outstanding shares.
1. Gerber’s Dilution Warning
Ross Gerber of Gerber Kawasaki posted on X that stock-based compensation is a real cost and urged Tesla shareholders to consider Meta’s $23.6 billion spend on share buybacks as a case study in dilution management.
2. Tesla’s Equity Reserves
An SEC filing shows Tesla reserved about 60 million shares for employee compensation and 208 million shares tied to Elon Musk’s performance pay, with Musk personally owning over 519 million shares as of December 30, 2025.
3. Buybacks vs Dilution Impact
Tesla’s 3.7 billion outstanding shares could face dilution pressure without offsetting buybacks, as the company issues new shares for compensation; share repurchases would be required to sustain per-share value if equity awards accelerate.