Seeking Alpha’s roundup of statements, announcements, and remarks that could impact the technology sector.
- Michael Burry, who was made famous by the movie The Big Short, is questioning Tesla’s (TSLA) valuation considering its hefty stock-based compensation packages.
“Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,” Burry wrote in his new Substack publication, according to CNBC.
Burry added that Tesla’s stock-based compensation dilutes the company’s value over time, estimating the rate at 3.6% per year. He also noted that the company doesn’t offer buybacks.
“With recent news of Elon Musk’s $1 trillion dollar pay package, dilution is certain to continue,” Burry added.
Burry’s comments on Tesla were part of a larger criticism of how tech companies issue stock-based compensation but then exclude it from their earnings results, CNBC said.
- OpenAI (OPENAI) CEO Sam Altman has reportedly issued a “code red” for the company, telling staff that they need to speed up fixes and improvements for ChatGPT amid increased competition from Google (GOOG) (GOOGL).
According to Bloomberg, which cited The Information, Altman has called for a “surge” effort to improve the AI chatbot, which would delay work on other projects such as autonomous AI agents and advertising.
- Apple (AAPL) does not intend to comply with an order by the Indian government that a state-run cybersecurity app called Sanchar Saathi be preloaded onto iPhones amid privacy concerns.
The government had ordered that the app, which is designed to track and block stolen smartphones, be included in phones made by Apple (AAPL), Samsung (OTCPK:SSNLF), and Xiaomi (OTCPK:XIACF) (OTCPK:XIACY) within 90 days. The companies were also encouraged to include the app in updates for phones already in use, Reuters reported.
According to the news outlet, Apple’s argument to the Indian government for not complying with the mandate will be that the app would compromise the security and privacy of its global iOS ecosystem.
Indian officials have argued that the app is not intrusive and can be easily deleted by users, Reuters added.