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Stock Track | Direxion Daily TSLA Bull 2X Shares Plunges 5% as Doubts Linger Over Tesla's Prospects

Stock Track09-20

The Direxion Daily TSLA Bull 2X Shares (TSLL), a leveraged exchange-traded fund tracking Tesla Inc.'s stock, experienced a sharp decline of 5.01% on Thursday, September 20th. The plunge came amid growing concerns over Tesla's ability to sustain its growth and address its mounting challenges.

One of the key factors cited by Tesla CEO Elon Musk for the company's struggles has been the high interest rate environment, which he believes has made it more difficult for potential buyers to finance the purchase of Tesla's electric vehicles. However, the recent interest rate cut by the Federal Reserve failed to provide a lasting boost to Tesla's stock, as investors remained skeptical about the underlying issues facing the company.

While Musk has repeatedly pointed to high borrowing costs as a significant headwind, analysts and industry experts have highlighted other pressing challenges that Tesla needs to address. These include stagnating revenue growth, declining profit margins, and the company's ability to successfully deploy its full self-driving technology and introduce new innovative products to the market.

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