Direxion Daily TSLA Bull 2X Shares (TSLL), a leveraged ETF tracking Tesla's stock performance, is soaring 5.03% in intraday trading on Wednesday. This significant uptick comes as Tesla's stock rebounds and investor anticipation builds for the company's upcoming robotaxi launch.
The surge in TSLL reflects growing optimism surrounding Tesla (TSLA), which has seen its own shares rise by 0.7% in premarket trading. This positive momentum follows a 3.9% decline on Tuesday, indicating a quick turnaround in investor sentiment. The electric vehicle maker's stock has been volatile in recent days, with investors closely watching developments ahead of the highly anticipated robotaxi launch scheduled for this weekend.
Adding to the bullish sentiment, the broader market is showing signs of strength. Stock futures rose modestly on Wednesday, with investors turning their attention to the Federal Reserve's policy-setting meeting. The central bank is widely expected to hold steady on interest rates, potentially providing a supportive environment for growth stocks like Tesla.
However, investors should note that while TSLL offers leveraged exposure to Tesla's performance, it also carries higher risks. The fund's performance may not exactly mirror Tesla's stock movement due to its leveraged nature and daily rebalancing. As Tesla continues to face challenges, including concerns about weaker deliveries and potential regulatory changes affecting its zero-emission vehicle credits, TSLL's volatility may persist in the coming days.
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