The Direxion Daily TSLA Bull 2X Shares (TSLL), a leveraged ETF that aims to deliver twice the daily returns of Tesla Inc. (TSLA) stock, surged 11.92% in pre-market trading on Monday. This significant move can be attributed to growing investor confidence in Tesla's future growth prospects, driven by several factors:
First, reports suggest that the incoming Trump administration plans to establish a federal framework for fully self-driving vehicles, making it a top priority for the Department of Transportation. This development is seen as a major boon for Tesla, which has been a pioneer in autonomous driving technology. With CEO Elon Musk's close ties to President-elect Trump, the company could benefit from more favorable regulations in this area.
Additionally, Tesla reported impressive third-quarter results, with strong growth in vehicle deliveries and improved profit margins. The company expects vehicle growth between 20% and 30% next year, fueled by the advent of autonomy and lower vehicle costs. Moreover, Tesla plans to launch its highly anticipated Cybercab and driverless ride-hailing services in key markets like California and Texas in the coming years.
Beyond the automotive sector, investors are also optimistic about Tesla's diversification into other areas, such as energy storage and robotics, which could drive further growth and innovation. With the potential tailwinds from the new administration's policies, which are expected to turbocharge the American economy, Tesla's prospects have become even more promising in the eyes of investors.
