Tesla’s (TSLA) recent ebbs and flows in the stock market have gained it the title of “meme stock” from Pimco’s chief investment officer and co-founder, Bil Gross. On Tuesday Gross took to X to criticise Tesla’s “sagging fundamentals” that contributed to a significant hike in stock prices. Gross went as far as to compare the EV giant’s 10 winning streak to the likes of GameStop, Zapp and Chewy who suffered from “pump and dump” trends earlier this year.
Tesla acting like a meme stock — sagging fundamentals, straight up price action.
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.
— Bill Gross (@real_bill_gross) July 9, 2024
Due to the erratic price fluctuations in stocks, meme stocks trend in response to the buzz they generate from investors online. Gross condemned Tesla’s recent gains, including a year-over-year decline of 5.8% in second-quarter vehicle deliveries, which was still above analyst estimates. Gross’s recent post against Tesla’s gains align with his scepticism against tech stocks, despite tech behemoths Microsoft Corp. (MFST) and Alphabet Inc. (GOOGL) finishing off a strong quarter. Alternatively, Gross advised his followers to place “safer bets” on the energy infrastructure sector. In addition to Gross’ criticism against Tesla’s S&P winning streak, Art Invest’s Cathie Wood has also reportedly trimmed her Tesla holdings. In the second quarter of 2024, Tesla saw its market share dwindle below 50%.
To contrast the beak remarks surrounding the carmaker’s bull run, former Tesla critic Ross Gerber has shifted his stance, now expressing bullish views on the company.
Market data highlights that Tesla closed 3.7% up at $262.33 on Tuesday, despite Gross’s critical take on X.
