Elon Musk has fired back at renowned bond investor Bill Gross for his recent comments on Tesla Inc. TSLA stock, suggesting that Gross lacks an understanding of technology.
What Happened: Musk’s response came in the wake of a post by Tesla investor Sawyer Merritt on social media platform X, who shared Gross’ views on Tesla’s stock.
Merritt quoted Gross as saying, “Tesla acting like a meme stock — sagging fundamentals, straight up price action; But then there seems to be a new meme stock every other day now. Most are pump and dump.”
Musk, in his reply, dismissed Gross’ comments, saying, “Bill Gross is used to making investment decisions by looking in the rear-view mirror, which is fine for bonds, but he does not understand technology, as that requires looking through the front windscreen.”
Why It Matters: Gross’ comments on Tesla’s stock behavior were made on Wednesday, where he likened the electric vehicle company’s situation to that of a “meme stock,” citing “sagging fundamentals” and a significant increase in stock price. This observation was made despite Tesla’s 10-day winning streak, with Gross suggesting that the recent gains were not justified due to its weakened fundamentals.
Meanwhile, Tesla’s stock has been on a rollercoaster ride, with Cathie Wood‘s Ark Invest pausing its selling after trimming its stake for three straight sessions. This pause came after the firm began selling Tesla shares following the company’s second-quarter deliveries report, which topped muted forecasts.
Additionally, Tesla’s EV market share in the U.S. has fallen below 50% for the first time, indicating increased competition in a sector it once dominated.
Price Action: Tesla Inc.’s stock closed at $263.26 on Wednesday, up 0.35% for the day. In after-hours trading, the stock dipped 0.62%. Year to date, Tesla’s stock has risen by 5.97%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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