Direxion Daily TSLA Bull 2X Shares (TSLL), a leveraged ETF that aims to deliver twice the daily performance of Tesla stock, experienced a significant surge of 7.30% during Wednesday's trading session. This impressive rally can be attributed to several positive developments surrounding Tesla, which have bolstered investor confidence and driven up the underlying stock price.
One of the key factors contributing to this upward momentum is the news that Tesla's board has formed a special committee to review CEO Elon Musk's compensation package. This move comes in the wake of a Delaware court blocking Musk's previous $56 billion pay deal. The board's proactive approach in addressing this issue has been well-received by investors, who see it as a sign of the company's commitment to resolving the compensation matter and potentially retaining Musk's leadership.
Additionally, Tesla's stock has been on an impressive run, with shares up 40% since the company's first-quarter results announcement in April. Investors are focusing on Tesla's future prospects, including the planned launch of a self-driving robotaxi service in Austin, Texas, and the introduction of new, lower-priced models. These initiatives are expected to drive demand and potentially expand Tesla's market share in the evolving electric vehicle landscape. The company's CFO, Vaibhav Taneja, emphasized that their strategy of providing the best product at a competitive price will be a winner, and the advancement in Full Self-Driving (FSD) features should help create a new era of demand.