|Tesla has a few quarters of cash left so they need cash and lots of it.|
Another example, I listen to a lot of CEO conference calls, sometimes four or five a day. Talk about mind-numbing. One analyst asked a CEO why he was doing a stock buyback when his top and bottom lines were falling. He said the board authorized it. The company was in serious financial difficulty and it tried to prop up its stock with buybacks. It worked for awhile but then it all came crashing down. Goldman Sachs had a strong buy on the company. It lost around 20% in one day. Today the company sells for pocket change (an 81% decline in five years).
Buybacks can and are used to create the illusion of higher EPS but it's only an illusion. That's why market cap helps see when buybacks are hiding a serious collapse. If the market cap is going down stay away from the stock....unless you want to lose money and sleep.