Tesla Stock is "Ridiculously Overvalued". Years of shareholder dilution is the central concern. Also Tesla’s valuation remains disconnected from its fundamentals and the company continues to expand its share count with no buyback program in place to offset the effect on existing shareholders.

Tesla’s SEC filings show that the company’s diluted share count has grown at an annual pace of roughly 3.5–3.7% over the past several years, driven primarily by stock-based compensation and past equity raises. Tesla’s outstanding shares have risen from approximately 1.0 billion in early 2020 to more than 3.4 billion today on a split-adjusted basis following the company’s 5-for-1 stock split in 2020 and 3-for-1 split in 2022, both of which increased the total number of shares available to the market.

Tesla issued multiple major equity offerings during the 2020–2021 period, including two $5 billion at-the-market (ATM) raises in September and December 2020, followed by additional tranches in 2021 totaling roughly $12 billion in new equity issuance. These capital raises contributed significantly to the expansion of the company’s float and remain a key driver of long-term dilution.

Tesla’s most recent quarterly filings, which reported over $1.7 billion in stock-based compensation (SBC) expense year-to-date, resulting in a continual increase in the weighted-average share count used for earnings calculations. Tesla continues to rely heavily on SBC as part of its employee and executive compensation structure, including multi-year, performance-based awards.

Tesla has no active share-buyback program, and CEO Elon Musk has previously stated that repurchases would only be considered once the company achieves more predictable and sustained free-cash-flow levels. Absence of buybacks means shareholders absorb the full impact of ongoing dilution, particularly as the company issues new shares to employees and through equity-linked programs.

This is my follow up post to my previous post on the same space which got deleted bcoz I didn't do any detailed analysis.Here you have it

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Recent events highlight significant regulatory actions against major tech companies and emerging trends in the AI workforce and social media governance.

Key Points:

• X, formerly Twitter, faces a €140 million fine from the EU for breaching online content rules.
• Kenyan workers are increasingly involved in training AI models for Chinese companies amid concerns about labor practices.
• Australia implements strict age verification laws targeting social media access for users under 16.

The European Union has taken a bold step in regulating online content as X, the social media company owned by Elon Musk, was fined €140 million for violating EU regulations designed to combat illegal and harmful content. This penalty, a consequence of a prolonged investigation, marks a significant moment in the enforcement of the Digital Services Act and highlights the EU's commitment to holding tech giants accountable. This development might provoke a strong response from the U.S. government, which has shown concern over perceived regulatory bias against American companies.

In another corner of the world, Chinese AI firms have intensified their recruitment of Kenyan workers, capitalizing on high youth unemployment and weak labor laws. Reports indicate that these firms are engaging workers to label data for AI models under exploitative conditions, raising alarms about a new form of digital colonialism. As governments struggle to draft effective regulations, the workforce is caught in a complex web of decentralized job markets, emphasizing the urgent need for clearer labor protections.

Meanwhile, the Australian government has introduced robust age verification rules aimed at preventing under-16s from accessing social media platforms. While technology such as facial recognition could technically facilitate age verification, public trust in social media companies remains low. The legislation reflects ongoing global challenges in safeguarding youth online while ensuring companies comply with regulations that prioritize safety and responsibility.

What are your thoughts on the balance between regulation and innovation in the tech industry?

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