Tesla is acting like a meme stock right now, says billionaire 'Bond King' Bill Gross
REUTERS/Jim Young
- Tesla is acting like a meme stock right now, according to legendary bond investor Bill Gross.
- Tesla stock has soared more than 40% amid a 10-day winning streak.
- Gross said Tesla had "sagging fundamentals" amid the "straight up price action."
Tesla is acting like a meme stock right now, according to legendary bond manager Bill Gross.
In a post to X on Tuesday, Gross said of the electric vehicle company:
Tesla acting like a meme stock — sagging fundamentals, straight up price action.
— Bill Gross (@real_bill_gross) July 9, 2024
But then there seems to be a new meme stock every other day now.
Most are pump and dump.
Chewy. Zapp. And old favorite GME.
The comments from Gross come amid an ongoing surge in Tesla stock.
The stock notched a 10-day win streak on Tuesday, rising nearly 4%.
Tesla stock has surged 44% over the period, flipping its year-to-date loss of nearly the same amount in April to a 6% gain.
But according to Gross, those gains aren't warranted as the company has "sagging fundamentals."
Tesla reported second-quarter vehicle deliveries last week, and while the nearly 444,000 vehicles delivered last quarter beat analyst estimates by 8,000, they still represented a year-over-year decline of 5.8%.
The EV-maker has been struggling with demand due to increased competition as more automakers release competing models, as well as from the growing popularity of hybrid cars.
The other stocks mentioned by Gross include Chewy, which saw an intraday gain of 36% in late June after Keith Gill tweeted a picture of a dog, Zapp, an electric vehicle maker that soared 496% over the past three days, and GameStop, which soared as much as 271% after Keith Gill returned to social media in May.
Since their recent peaks, shares of Chewy and GameStop are down 38% and 62%, respectively, while Zapp is still in rally mode as of Tuesday's close.