Tesla has been called a “meme stock” by longtime investor and fund manager Bill Gross, as shares of the company have exploded to ten consecutive days of growth and a 50 percent bump in the past 30 trading sessions.
A meme stock is a more recently used term to describe a security that gains popularity through social media.
Perhaps the most notable is that of Gamestop $GME, which has been a major contributor to many investors’ success through the short-squeeze it put on large hedge funds over the past three years.
Gamestop and Tesla are significantly different; some could even say the two stocks are on polar opposite ends of the spectrum.
Gamestop is a struggling company dealing with a world where games are now digitally acquired, and game consoles are purchased online, at least for the most part. Ideally, Gamestop seemed like a logical company to short for hedge funds, but retail investors fought back, led by notable online investing personality RoaringKitty.
Tesla, on the other hand, is a leader in electric cars and sustainable energy and has given investors plenty of ups and downs since the COVID-19 pandemic.
However, the company’s shares have rebounded nicely since a rough drop at the beginning of 2024, canceling out the losses it felt, and are up over 5 percent this year.
Tesla continues stratospheric run as FSD, AI take main focus
Over the last ten days, Tesla shares are up 25 percent. It started by reporting a delivery beat over Wall Street consensus figures for Q2, its strongest quarter in terms of energy deployment, and has plenty of catalysts lying ahead of it, especially the August 8 Robotaxi Unveiling Event.
Still, Gross says Tesla is “acting like a meme stock,” as it has increased in value considerably despite “sagging fundamentals.”
Gross said on X:
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
Tesla stock is going for its eleventh-straight day of gains, but is currently trading down just 0.25 percent this morning.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
