TSLA - Elon Musk's Tesla Is Now A 'Meme Stock' Says Economist: 'The Market Does Not Particularly Care' | Benzinga
Elon Musk‘s Tesla Inc. (NASDAQ:TSLA) has been labeled a “meme stock” by a renowned economist, who believes that the company’s success is now more about Musk’s promises than its actual performance.
What Happened: UC Berkeley economist J. Bradford DeLong suggested that Tesla’s market success is now largely dependent on Musk’s ability to keep making promises, regardless of the company’s actual delivery, the economist wrote in an op-ed for Project Syndicate.
“From the standpoint of its suppliers, employees, and customers, it is a source of income and production,” he said. “And from the standpoint of Wall Street speculators, it is a bouncing ball in a roulette wheel: a tech-bubble casino play.”
DeLong, in an op-ed, pointed out that Musk, after unlocking his entire pay package in 2018, has been promoting ideas that the company has yet to deliver on, such as full self-driving, humanoid robots, and an artificial intelligence supercomputer.
“For all the current Tesla shareholders ...