Direxion Daily TSLA Bull 2X Shares (TSLL) surged 5.02% in pre-market trading on Wednesday, following Tesla's 5.7% gain on Tuesday. The leveraged ETF's movement reflects growing investor optimism surrounding Tesla's latest announcements and easing political tensions.
The primary catalyst for this surge appears to be Tesla CEO Elon Musk's announcement of a tentative June 22 launch date for the company's highly anticipated robotaxi service in Austin, Texas. Musk stated, "We are being super paranoid about safety, so the date could shift," highlighting Tesla's cautious approach to this groundbreaking service. The robotaxi launch is seen as a crucial step in Tesla's autonomous driving ambitions and could significantly impact the company's future valuation.
Additionally, the market seems to be responding positively to the apparent de-escalation of tensions between Musk and President Donald Trump. Their recent public feud had caused Tesla's stock to tumble 14% last week, but the reconciliation has helped the stock recover those losses. This political stability is likely contributing to investor confidence in Tesla's near-term prospects.
However, analysts remain divided on Tesla's outlook. While some see the robotaxi service as a potential game-changer, others, like analysts at Baird Equity Research, caution that "Musk's comments regarding the robotaxi ramp are a bit too optimistic." This mixed sentiment suggests that while investors are currently bullish, they should remain aware of the execution risks associated with Tesla's ambitious plans.
