Tesla, billionaire Elon Musk’s electric car company, may be in for a wild ride in the stock market, as a longtime investor has dubbed it a new meme stock.
The investor, Bill Gross, shared his thoughts on X, noting that Tesla was behaving like a speculative play among retail investors.
“Tesla acting like a meme stock — sagging fundamentals, straight up price action,” Gross said. “But then there seems to be a new meme stock every other day now. Most are pump and dump.”
Since June 24, Tesla is running on a 10-day winning streak, up 43.6%.
The rally for the stock came as Tesla’s second-quarter vehicle production and delivery numbers were better than analysts were expecting.
However, Gross doesn’t seem to think the strong delivery report alone could trigger such a great week plus for the company.
Gross, 80, who was once the most influential investor in the U.S. bond market, compared Tesla’s stock to other meme stocks, like Chewy, Zapp, and GameStop.
Those memstocks were driven mainly by influence from “Roaring Kitty,” the online personality who was behind the skyrocketing stock price of GameStop and AMC.
However, the height of Tesla’s run might be over now, as prices began to fall back to where they were a week ago on Thursday.
At the time of this article, Tesla’s stock prices sat around $247, down from $270 at just 10 a.m. on Thursday.
Though, they are still up from a month ago when the price of a share was $168 on June 11.