Tesla gets called a ‘meme stock’ by longtime investor and fund manager

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.

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