Bill Gross says Tesla is the new meme stock

5 months ago 21

Bill Gross' Janus Henderson Global Unconstrained Bond Fund suffered much than $200 cardinal successful redemptions past month, lowering assets to $1.25 cardinal from implicit $2.24 cardinal successful February.

Lucy Nicholson | Reuters

Longtime capitalist Bill Gross believes Elon Musk's Tesla is behaving similar a speculative play among retail investors.

"Tesla acting similar a meme banal — sagging fundamentals, consecutive up terms action," the erstwhile main concern serviceman and co-founder of Pimco said successful a station Tuesday day connected X. "But past determination seems to beryllium a caller meme banal each different time now. Most are pump and dump."

Tesla is connected a stunning 10-day winning streak, up a whopping 43.6% since June 24. The rally was initially triggered by Tesla's second-quarter vehicle production and deliveries numbers that bushed expert expectations.

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Tesla's run

Gross, who astatine 1 clip was the astir influential capitalist successful the U.S. enslaved market, seems to deliberation that the beardown transportation study wasn't capable to warrant specified an eye-popping run.

The 80-year-old capitalist besides compared Tesla with Chewy, Zapp and the "old favorite" GameStop. Chewy precocious gained meme presumption aft online property Roaring Kitty, who inspired 2021's GameStop mania, bought a sizable involvement successful the favored retailer.

Gross revealed antecedently that helium dabbled in trading GameStop and AMC options for speedy profits successful 2022, calling those "lottery summons stocks."

Shares of Tesla are inactive up conscionable astir 6% twelvemonth to date, lagging the S&P 500, which has gained 17%.