The "Direxion Daily TSLA Bull 2X Shares" (TSLL), a leveraged exchange-traded fund (ETF) tracking Tesla's stock, witnessed a remarkable surge of 26.63% over 24 hours on November 6, 2024. This significant price movement was fueled 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 surge was speculation surrounding the potential impact of the election results on Tesla and the broader electric vehicle (EV) industry. Analysts anticipated varying implications for Tesla depending on the winning candidate, particularly concerning EV tax credits and incentives. A Republican victory could lead to the removal of EV tax credits, which Tesla's scale might help it weather 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.
