Bond King Bill Gross Says Tesla Acting Like a Meme Stock as Shares Surge 35% in One Month
Gross also called out stocks like GameStop, Chewy, and Zapp
![Bill Gross](https://d.ibtimes.co.uk/en/full/1724391/bill-gross.png?w=736&f=cc164e0dc62090b13ceea7a1f1f6f509)
"Bond King" Bill Gross is known for his aggressive bond investing strategies and is accredited with democratising the fixed-income securities market by making it accessible to all investors. He co-founded Pacific Investment Management Company (PIMCO) and worked to make it the biggest active fixed-income fund management firm globally.
Before PIMCO, trading bonds were rare and only through paper documents. PIMCO began active trading and expanded into junk bonds and emerging markets. In September 2023, the company managed assets worth over $1.7 trillion. Gross resigned from PIMCO in 2014 and joined Janus Capital Group until his retirement in 2019.
In a July 9 post on X, the legendary bond manager said, "Tesla acting like a meme stock — sagging fundamentals, straight up price action." His comments come as the electric vehicle company's stock has surged over 35% in the last month, cancelling almost all year-to-date losses. However, Gross thinks the rebound isn't warranted as the firm has "sagging fundamentals."
Tesla has been facing waning demand amid the rising popularity of hybrid cars and stiff competition as more EV makers roll out newer models. However, EV stocks have climbed higher after Q2 vehicle deliveries beat Wall Street estimates.
Tesla recently reported almost 444,000 vehicle deliveries for Q2, beating analyst estimates by nearly 8,000. However, the deliveries declined 5.8% year over year. During the quarter, the automaker also deployed a record 9.4 GWh of energy storage products. Tesla's founder Elon Musk recently beat a $500 million severance lawsuit filed by fired Twitter workers, which could have also played a role in driving the rally. As of now, investors are awaiting the company's highly-anticipated Q2 earnings report later this month.
Bill Gross Calls Out GameStop, Chewy, and Zapp
In his X post, Gross also noted that "there seems to be a new meme stock every other day now. Most are pump and dump. Chewy. Zapp. And old favourite GME."
Chewy, a Florida-based online retailer of pet food and products, saw its stock jump by 34% intraday after Roaring Kitty, whose legal name is Keith Gill, posted a picture of a cartoon dog on X that apparently had references to Chewy. The picture drove up Chewy's shares to $39.10. However, a selloff erased the gains soon after. Gill has played a vital role in driving active trading of stocks like GameStop by posting cryptic images online.
GameStop shares soared above $48 from as low as $10.91 in May after Gill returned to social media. The stock has declined since then, trading at over $25 as of July 12.
Meanwhile, EV maker Zapp's shares have surged over 1,000% in the past month, reaching a high of $17.98 this week. The company announced on July 12 that it secured commitments of up to $50 million to expedite the commercial rollout of the i300 electric bike and expand operation in more countries, with a focus on Asia, given the rise in urban densification.
Last month, Zapp reported reducing its losses by millions of dollars and expects to sell over 5,000 units of the i300 model by the end of FY 2025. The company is working to increase its run rate to over 25,000 units annually by FY 2026.
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