Direxion Daily TSLA Bull 2X Shares (TSLL), a leveraged ETF tied to Tesla's stock performance, plummeted 7.28% during intraday trading. The sharp decline reflects heightened volatility in Tesla's shares, driven by investor reactions to Elon Musk's latest announcements.
The drop follows Musk's unveiling of aggressive plans to accelerate Tesla's AI chip development, including a nine-month iteration cycle and the construction of a proprietary wafer fab. While these initiatives aim to secure Tesla's computing power independence, investors view them as financially risky or overly ambitious, leading to a sell-off in Tesla and its leveraged derivatives like TSLL.
Musk's comprehensive computing power strategy, which includes rapid chip iterations and plans for a self-built wafer fabrication plant, has raised concerns about the financial and operational risks involved. The market's reaction underscores the skepticism surrounding Tesla's ability to execute such ambitious technological and manufacturing goals.

