Bond King Gross: Tesla is becoming the new retail concept stock
Recently, Tesla's stock has risen for ten consecutive days. "Bond King" Bill Gross believes that Musk's behavior is like a speculative game for retail investors: weak fundamentals, but prices rising in a straight line
Veteran investor "Bond King" Bill Gross believes that Tesla is like a speculative game for retail investors.
"Tesla is like a popular concept stock - weak fundamentals, but the price keeps rising in a straight line," the former chief investment officer and co-founder of PIMCO said in an article on X on Tuesday. "But now it seems like there's a new popular concept stock every other day, most of them are 'pumped and dumped'."
Tesla has been on a continuous rise in the past 10 days, with its stock price soaring an astonishing 43.6% since June 24th. This marks the longest continuous rise in a year. The initial surge was due to Tesla's vehicle production and delivery numbers for the second quarter exceeding analysts' expectations.
Currently, Tesla's stock price in after-hours trading on the US stock market is $261.62, a decrease of 0.62%.
Gross believes that this strong delivery report is not enough to support such a remarkable increase.
He compared Tesla to "old-school hot stocks". Recently, due to online celebrity Roaring Kitty's purchase of a large number of shares in pet retailer Chewy, Chewy has gained the status of a popular concept stock. This celebrity previously sparked the frenzy around GameStop in 2021.
Gross had previously revealed that he quickly made profits in 2022 through trading options of GameStop and AMC, calling these stocks "lottery stocks".
Despite this, Tesla's stock price has only risen by about 6% so far this year, lagging behind the S&P 500 index, which has risen by 17% this year