Bill Gross, a seasoned investor, has raised concerns about the behavior of Tesla stock in the market. He compared Tesla’s current situation to a speculative play among retail investors, noting its resemblance to a meme stock. Despite Tesla’s recent 10-day winning streak and impressive rally following a strong delivery report, Gross questions whether the fundamentals justify such a significant surge in stock price.

Gross draws parallels between Tesla and other meme stocks such as Chewy, Zapp, and GameStop. He highlights the fleeting nature of meme stocks, referring to them as pump-and-dump schemes. This comparison suggests that Tesla’s current momentum may not be sustainable in the long run, especially if it relies heavily on speculative trading behavior rather than solid fundamentals.

As a former chief investment officer with extensive experience in the bond market, Gross brings a historical perspective to his analysis of Tesla. His reference to GameStop and AMC options trading in 2022 reflects a pattern of engaging with volatile stocks for short-term gains. This history of dabbling in high-risk trading further underscores Gross’s skepticism about Tesla’s recent price action.

Despite Tesla’s impressive rally in the short term, its year-to-date performance still lags behind the broader market. With only a 6% gain compared to the S&P 500’s 17% increase, Tesla’s recent surge may not be indicative of sustained growth and could potentially be driven by speculative trading activity.

Bill Gross’s critical assessment of Tesla’s behavior in the market raises important questions about the sustainability of its current momentum. By comparing Tesla to other meme stocks and questioning the underlying fundamentals driving its price action, Gross highlights the risks associated with speculative trading behavior. Investors should tread carefully and conduct thorough research before participating in volatile market trends like the one observed with Tesla.


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