The Direxion Daily TSLA Bull 2X Shares ETF (TSLL), which tracks twice the daily performance of Tesla Inc. (TSLA), plunged over 5% in pre-market trading on Monday, November 12th. This sharp decline comes after Tesla's remarkable post-election rally, fueled by investor optimism surrounding the re-election of President Donald Trump.
Following Trump's victory, Tesla's stock surged nearly 40%, pushing the company's market capitalization above the $1 trillion mark. The rally was driven by several factors, including Elon Musk's active support for Trump's campaign and expectations that the new administration will fast-track regulatory approval for Tesla's autonomous driving and AI initiatives.
Wedbush analyst Dan Ives called Musk's support for Trump a "poker move for the ages," suggesting it could be worth $1 trillion for Tesla's ambitions in autonomous driving. Ives raised his target price for Tesla to $400, the highest among major brokers, citing the potential benefits under a Trump White House.