The "Direxion Daily TSLA Bull 2X Shares" (TSLL), a leveraged exchange-traded fund (ETF) tracking Tesla's stock, experienced a remarkable surge of 30.38% in pre-market trading on November 6, 2024. This surge was driven by a combination of factors, primarily revolving around the U.S. presidential election and Tesla's strong performance outlook.
One of the key drivers behind the rally was speculation surrounding the potential impact of the election results on Tesla and the broader electric vehicle (EV) industry. With a Republican victory appearing increasingly likely, analysts anticipated varying implications for Tesla, particularly concerning EV tax credits and incentives. While a Trump administration could lead to the removal of EV tax credits, Tesla's scale might help it weather the impact better than rivals. Conversely, a Democratic administration was expected to maintain or increase EV incentives to promote consumer adoption.
Additionally, positive news about Tesla's performance further bolstered investor confidence. The company announced a 4% wage increase for employees at its German gigafactory, signaling a commitment to its workforce amid industry-wide challenges. Moreover, Tesla's strategic shift towards fully autonomous vehicles, including plans for a $25,000 "Cybercab" robotaxi expected to enter production in 2026, fueled optimism about the company's future prospects in the self-driving arena. Tesla's strong Q3 financial results, including record cash flow and profitability boosted by regulatory credits, also contributed to the rally.
