Tesla (NASDAQ: TSLA) has been one of the standout performers in the S&P 500 in the previous month, as it added over 50% to its value, with almost 20% coming from the last five trading sessions alone. However, some think that TSLA has all the specifications of a meme stock.
Namely, co-founder of Pacific Investment Management Company (PIMCO), an investment firm that manages nearly $1.9 trillion in assets, Bill Gross, in his recent tweet on X, said that TSLA stock acts as a meme stock as there are no fundamentals to support its recent price surge.
He compared TSLA to meme stocks like Chewy (NYSE: CHWY), Zapp (NASDAQ: ZAPP), and GameStop (NYSE: GME).
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Other hedge fund managers seem to think the same of TSLA stock
According to Hazeltree, which monitors over 500 hedge funds, 17.6% of hedge funds are shorting Tesla stock, marking the highest share in over a year and up from 13.9% three months ago.
This increase comes despite short sellers losing $5.7 billion a week after Tesla exceeded expectations for its Q2 2024 vehicle deliveries.
Since hitting a low in April 2024, Tesla’s stock has surged nearly 80%, adding approximately $350 billion to its market capitalization.
The stock is now up 5.60% year-to-date, following an initial decline of 42% in the first four months, showcasing an incredible turnaround.
Short sellers are on the losing side of the TSLA stock rally
The recent TSLA stock rally has caused TSLA short-sellers to lose billions in days, with losses of $3.7 in just two days.
This development prompted Tesla CEO Elon Musk to issue a stark warning to TSLA short-sellers, including Microsoft (NASDAQ: MSFT) founder Bill Gates, saying they will get “obliterated.”
The upcoming earnings report for Q2 on July 23 will reveal whether Musk or short-sellers are right, as EV maker stock continues to trend higher in the pre-market.
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