Ross Gerber Highlights Meta's '$23.6 Billion' Share Buyback Cost, Warns TSLA Shareholders About Stock Compensation

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Badar ShaikhThu, February 26, 2026 at 2:31 AM GMT+1 2 min readInvestor Ross Gerber of the investment firm Gerber Kawasaki has warned Tesla Inc. (NASDAQ:TSLA) investors of the potential ramifications of stock-based employee compensation, drawing parallels with Meta Platforms Inc.'s (NASDAQ:META) share buybacks.The investor took to the social media platform X on Monday, warning Tesla shareholders that stock compensation was a real cost for companies. "Tesla shareholders should pay attention to this regarding meta," he said, then shared a quote from an article by the Wall Street Journal that said the Mark Zuckerberg-led company spent close to $23.6 billion on "share buybacks to offset dilution."Stock compensation is a real cost. Tesla shareholders should pay attention to this regarding meta. ‘Meta spent an estimated $23.6 billion on share buybacks to offset dilution.' $META $TSLA https://t.co/SHmF4vqPvpDon't Miss:This AI Helps Fortune 1000 Brands Avoid Costly Ad Mistakes — See Why Investors Are Paying AttentionExplore the Fire-Safe Energy Storage Company With $185M in Contracted RevenueShare buybacks can play a major role in stock valuation. Employees, when offered stock-based compensation, can affect the value of the stock as the number of shares issued increases, making existing shares less valuable.Companies buying back shares can offset dilution concerns as it decreases the number of overall shares available on the market, leading to an increase in stock value.Tesla, according to an Electrek report from November last year, reserved close to 60 million shares as compensation for Tesla's employees, but also reserved 208 million shares for CEO Elon Musk.Trending: Own the Characters, Not Just the Content: Inside a Fast-Growing Pre-IPO IP CompanyHowever, Musk's trillion-dollar pay package, which was criticized by Gerber, who opined that the package could result in stock dilutions close to $275 million per day. If Musk hits all of the pay package's milestones, the billionaire could own over 423 million shares of the company, separate from the reported 206 million share reserve.According to an SEC filing dated December 30, 2025, Musk owns over 519 million shares of the EV giant. Tesla currently has over 3.7 billion outstanding shares on the market.The pay package includes performance-based compensation and includes certain milestones that Musk must hit with Tesla to earn the awards. Some milestones include 10 Million Active FSD Subscriptions, 20 million Tesla vehicle deliveries, as well as 1 million Optimus bots delivered and 1 million Robotaxis operating commercially.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,873.75 -46.25 (-0.67%)Dow Futures49,106.00 -425.00 (-0.86%)Nasdaq Futures24,903.75 -177.25 (-0.71%)Russell 2000 Futures2,648.30 -32.30 (-1.21%)VIX20.76 +2.13 (+11.47%)Gold5,249.90 +55.70 (+1.07%)Trending tickersNFLX Netflix, Inc. 84.59 +1.88 (+2.28%)XYZ Block, Inc. 54.53 +2.59 (+4.99%)BTC-USD Bitcoin USD 65,928.26 -2,204.45 (-3.24%)DUOL Duolingo, Inc. 117.45 +5.80 (+5.19%)CRWV CoreWeave, Inc. 97.63 -0.38 (-0.39%)PortfolioSign in to access your portfolioSign inTop gainersSEZL Sezzle Inc. 84.70 +22.08 (+35.26%)LMAT LeMaitre Vascular, Inc. 113.69 +22.31 (+24.41%)FA First Advantage Corporation 11.69 +2.17 (+22.79%)IONQ IonQ, Inc. 40.88 +7.29 (+21.70%)HPP Hudson Pacific Properties, Inc. 7.69 +1.33 (+20.91%)Top losersEOSE Eos Energy Enterprises, Inc. 6.74 -4.39 (-39.44%)ACMR ACM Research, Inc. 57.04 -11.43 (-16.69%)FOUR Shift4 Payments, Inc. 48.41 -8.96 (-15.62%)FSK FS KKR Capital Corp. 11.29 -2.03 (-15.24%)MIRM Mirum Pharmaceuticals, Inc. 92.19 -16.43 (-15.13%)Most activeNVDA NVIDIA Corporation 184.89 -10.73 (-5.49%)EOSE Eos Energy Enterprises, Inc. 6.74 -4.39 (-39.44%)NU Nu Holdings Ltd. 15.06 -1.59 (-9.55%)PLUG Plug Power Inc. 1.9100 0.0000 (0.00%)AAL American Airlines Group Inc. 13.94 +0.62 (+4.65%)Top economic eventsEarnings eventsMy earnings eventsEarnings events