Home Finance Bill Gross says Tesla is the new meme stock

Bill Gross says Tesla is the new meme stock

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Bill Gross says Tesla is the new meme stock

Bill Gross’ Janus Henderson Global Unconstrained Bond Fund suffered more than $200 million in redemptions last month, dropping assets to $1.25 billion from more than $2.24 billion in February.

Lucy Nicholson | Reuters

Longtime investor Bill Gross believes that about Elon Musk Tesla behaves like a speculative game among retail investors.

“Tesla is acting like a meme stock – sagging fundamentals, outright price action,” the former chief investment officer and co-founder of Pimco said in a post on X on Tuesday afternoon. Most are now pump-and-dump.”

Tesla is on a stunning 10-day winning streak, up a whopping 43.6% since June 24. The rally was initially driven by Tesla’s second-quarter car production and delivery figures that exceeded analyst expectations.

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Tesla’s run

Gross, who was once the most influential investor in the U.S. bond market, seems to think the strong yield report wasn’t enough to justify such a high-profile run.

The 80-year-old investor also compared Tesla to Tough, Zapp and the “old favorite” GameStop. Chewy recently rose to meme status after online personality Roaring Kitty, who inspired 2021’s GameStop mania, bought a significant stake in the pet store.

Gross previously revealed that he dabbled in trading GameStop and AMC options for quick profits in 2022, calling them “lottery ticket stocks.”

Tesla shares are still only up about 6% year to date, lagging the S&P 500, which has gained 17%.

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