Tesla is being viewed as the new meme stock, according to Bill Gross.

Tesla is being viewed as the new meme stock, according to Bill Gross.
Tesla is being viewed as the new meme stock, according to Bill Gross.

Bill Gross, a longtime investor, believes that Elon Musk's behavior resembles a speculative play among retail investors.

""Tesla's stock is experiencing sagging fundamentals and price action, similar to a meme stock, but there seems to be a new meme stock emerging every other day, with most being pump and dump," said the former chief investment officer and co-founder of Pimco in a post on X Tuesday afternoon."

Tesla has experienced a remarkable 10-day winning streak, with a 43.6% increase in stock value since June 24. The surge was initiated by Tesla's second-quarter vehicle production and deliveries figures that surpassed analyst predictions.

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Gross, once the most influential investor in the U.S. bond market, believes that the strong delivery report did not warrant such a remarkable increase.

The elderly investor compared Tesla to both the "old favorite" and another company that recently gained meme status, Chewy, after being inspired by online personality Roaring Kitty's purchase of a significant stake in the pet retailer.

In 2022, GameStop and AMC options were revealed to be "lottery-ticket stocks" by Gross, who admitted to trading them for quick profits.

Despite gaining 17%, the S&P 500 is outpacing Tesla's 6% increase.

by Yun Li

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