To supplement Bill Mauer's article about dilution, let's look at what it would take for Tesla to earn $5 per share. Let's go a little conservative and say that Tesla's dilution in the near future will go up to 200 million shares outstanding from 150 million currently. Let's assume Tesla suddenly goes on an austerity binge and produces a ton of cars profitably, and reports EPS of $5 per share. That would translate to $1 Billion in net income. At a $200 stock price, that would be a P-E of 40 times earnings. Valuation is subjective of course, but that still seems like an overvalued stock to me. Then again, for a company that hasn't yet shown a profit, they seem a long way off from being able to produce net income of a Billion dollars. IMHO, that illustrates how overvalued the stock currently is.
Disclosure: I am/we are short TSLA.