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Tesla’s (Nasdaq: TSLA) stock performance and market position have sparked a debate between renowned investor Bill Gross and CEO Elon Musk. The electric vehicle manufacturer’s shares have experienced significant volatility in recent weeks, drawing attention from market watchers and industry experts alike.
Bill Gross Comments on Tesla Stock Acting like a Meme Stock, Elon Musk Responds
Bill Gross, known as the “Bond King” and founder of Pacific Investment Management Company (PIMCO), has raised eyebrows with his recent comments on Tesla’s stock.
Gross claimed that Tesla is “acting like a meme stock,” citing what he perceives as “sagging fundamentals” coupled with “straight up price action”.
The veteran investor suggested that there seems to be “a new meme stock every other day now,” and cautioned that most meme stocks are typically “pump and dump” schemes.Tesla CEO Elon Musk swiftly responded to Gross’s remarks on the social media platform X. Musk retorted, “Bill Gross is used to making investment decisions by looking in the rear-view mirror,” acknowledging that while this approach may be “fine for bonds,” it falls short when it comes to technology.
The “Technoking” of Tesla asserted that Gross “does not understand technology,” emphasizing that comprehending the tech sector “requires looking through the front windscreen.”
Tesla Stock Rally Gets a Brake Check
As of 11:59 AM EDT, Tesla stock was trading at $246.18, down 6.49% ($17.08) for the day. Despite this dip, the stock has surged nearly 50% over the past month, although it remains down 1.11% year-to-date.
Tesla’s market capitalization stands at approximately $783.68 billion, with a trailing P/E ratio of 67.33 and a forward P/E ratio of 106.38.The electric vehicle maker is facing increased competition, with its U.S. EV market share falling below 50% for the first time in the second quarter of 2024.More By This Author:Airline Stocks Face Turbulence After Delta Posts Weak Q3 Guidance
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