Leveraged Tesla ETFs Make Big Moves Amid Epic TSLA Stock Skid
Tesla Inc. (TSLA) is on a historic losing streak, falling for eight consecutive weeks—the longest in the company's history. Could this week make it nine in a row?
While Tesla investors are licking their wounds, things are even worse for those holding leveraged Tesla ETFs.
Shares of Tesla have lost half their value since peaking in December 2024, but the Direxion Daily TSLA Bull 2X Shares (TSLL) has plummeted 80% during the same time frame.
On the flip side, inverse Tesla ETFs have surged. The Tradr 2X Short TSLA Daily ETF (TSLQ) has nearly tripled since Tesla's peak, benefiting from the stock's downward trajectory.
TSLL and TSLQ are the largest and third-largest Tesla-related ETFs in the U.S., respectively, with $2.9 billion and $324 million in assets under management. But they are just two of the 17 Tesla-related ETFs in the U.S., which collectively hold $4.8 billion in AUM.
Including TSLL, five Tesla-focused ETFs offer various levels of leverage on the stock. On the inverse side, there are four ETFs designed to short Tesla at different magnitudes.
Then, some ETFs employ covered call strategies on Tesla to generate income. The largest is the $840 million YieldMax TSLA Option Income ETF (TSLY), which has declined around 55% since Tesla's peak—slightly more than the stock itself.
Using Tesla options to generate income has become a popular strategy, with five such ETFs currently listed in the U.S.
One Tesla ETF taking a different approach is the Simplify Volt TSLA Revolution ETF (TESL), which uses options to 'manage downside risks.' However, that strategy hasn't provided much protection lately—TESL is down 53% since Tesla's peak, slightly worse than the stock itself.
The following are two smaller, but intriguing, Tesla ETFs.
Battleshares TSLA vs. F ETF (ELON): A pair trade that combines a 2x leveraged long position in Tesla with a 1x short position in Ford Motor (F). The fund, which launched a month ago, is already down 63%.
STYKd 100% UBER & 100% TSLA ETF (ZIPP): This fund uses leverage to combine positions in both Tesla and Uber Technologies Inc. (UBER). It launched earlier this month and is already down 19%.
Tesla's ongoing decline has put immense pressure on leveraged long ETFs while providing a windfall for inverse ETFs.
With Tesla teetering on its ninth-straight week of losses, investors in these funds will be watching closely to see if the trend reverses—or if the selloff continues.Permalink | © Copyright 2025 etf.com. All rights reserved
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
an hour ago
- CNBC
CCTV Script 06/06/25
The war of words between Elon Musk and Donald Trump, which seemed to escalate almost hourly, has already cost real money in the capital markets. Overnight, Musk's personal net worth reportedly fell by approximately $34 billion. By aligning the timing of their social media exchanges with Tesla's stock movements, a clear pattern emerges: as the feud grew more intense, with language becoming increasingly blunt and emotional, Tesla's share price continued to slide. Many analysts believe that Tesla's stock is likely to remain volatile. To assess its future trajectory, we can start with the trigger of this conflict: a recently passed House spending bill. One provision would eliminate tax credits for electric vehicles—directly impacting Tesla. JPMorgan analysts estimate that the new legislation could cut Tesla's annual profits by around $1.2 billion. However, some market observers note that both Musk and others in the industry had long anticipated that the Trump administration would eventually scrap EV subsidies. This expectation has been priced in—it was only a matter of timing. But of even greater consequence is the second layer of impact: the broader regulatory posture of the White House toward Musk, particularly in the autonomous driving space. Timing is critical. Next week, Tesla is expected to debut its long-awaited Robotaxi service in Austin, Texas. Progress in self-driving technology has been a key reason many investors remain bullish on Tesla. But the breakdown in Musk's relationship with Trump could undermine those expectations. "there's a view that the battle here going on between musk and Trump, that this is going to continue to sort of, you know, increase, and with that, ultimately does is that autonomous and the regulatory vision does Trump now, now not start to play nice in the sandbox with musk.""Elon Musk, as brilliant as he can be, can also be mercurial and impetuous. CUT TO from a trading perspective, I think the stock could easily trade down into the 250s 260s until you get some support." Beyond the personal feud, the spotlight is also shifting to the broader relationship between Silicon Valley—the U.S. tech hub—and Washington, D.C.—the political center. As Musk and Trump move from allies to adversaries, their split is drawing attention to the evolving dynamic between big tech and federal power. Analysts told CNBC that during Trump's first term, major tech firms often found themselves in the administration's crosshairs. Companies like Meta, Google, and to some extent Apple were all named in antitrust inquiries. Now, the rift between Musk and Trump may open new doors for tech leaders who have had tense relations with Musk. For instance, Jeff Bezos—who also leads a space company—has in recent months made efforts to court Trump more closely, reportedly taking cues from Musk's political playbook. This shift may also present an opportunity for Sam Altman, CEO of AI startup OpenAI. "If you're a startup that's trying to make big names or big headlines with investments for the US, that's probably a good place to be." Still, some analysts caution that this overnight drama may not deserve too much attention. A defining feature of the Trump-era policymaking process has always been its volatility—things can shift dramatically within just a few hours. What ultimately matters is returning to the fundamentals and taking a long-term view of where the industry—and the economy—are heading.
Yahoo
an hour ago
- Yahoo
Cathie Wood says the Musk-Trump feud reveals how much Musk's companies rely on the government
Ark Invest's Cathie Wood has weighed in on the public feud between Elon Musk and Donald Trump. Wood said the feud reveals how much Musk's companies rely on the US government. Trump said Saturday he had no desire to fix his relationship with the Tesla CEO. The public feud between Elon Musk and President Donald Trump has shown investors just how much control the US government has over Musk's companies, Ark Invest CEO Cathie Wood says. "I think the way this is evolving is Elon, Tesla, and investors are beginning to understand more and more just how much the government has control here," Wood said in a video posted to the company's YouTube channel on Friday. Many of Musk's companies have key links to the government and have received billions of dollars in federal loans, contracts, tax credits, and subsidies over the years. "Elon is involved in companies that are depending on the government," Wood said, pointing to Tesla, SpaceX, and Neuralink as examples. SpaceX's COO, Gwynne Shotwell, said last year that the company has $22 billion worth of federal contracts. Neuralink, Musk's brain chip company, is subject to FDA regulation, and a less friendly regulatory environment could impact Tesla's robotaxi rollout plans. Tesla stock fell more than 14% on Thursday after Musk and Trump became locked in a series of increasingly bitter clashes. The feud appeared to begin, at least publicly, on Tuesday, after Musk criticized Trump's "One Big Beautiful Bill." He called it a "disgusting abomination" and said it would increase the national budget deficit. Tensions rose fast between the once-close allies on Thursday. Trump threatened to cut Musk's government contracts and Musk said SpaceX would immediately begin decommissioning its Dragon spacecraft — which returned stranded NASA astronauts Suni Williams and Butch Wilmore from the International Space Station in March. Musk later retracted that threat, which Wood said was a sign he was "beginning to walk this back." Wood said the rift with Trump could, in part, be Musk's attempt to further decouple himself from the Trump administration. Musk announced in April that he would be stepping back from his government work. "One of the hypotheses out there is that what has happened was partly — not entirely — orchestrated," Wood said. "Clearly, there has been some brand damage to Tesla, which he readily admits, and I think he's trying to disengage from the government and being associated with one party or the other." Moving forward, Wood said neither Trump nor Musk needed to get "bogged down" with a fight and that she believed both would eventually heed that reasoning. She also appeared to be confident that Musk could make the situation work for him. She said Musk "works really well under pressure" and that "he creates a lot of that chaos and pressure himself." Trump, however, signaled Saturday that he had no desire to fix his relationship with the SpaceX CEO anytime soon. "I have no intention of speaking to him," Trump told NBC News. "I think it's a very bad thing, because he's very disrespectful. You could not disrespect the office of the President," he added. Vice President JD Vance struck a somewhat friendlier tone when asked about the possibility of reconciliation during a Thursday interview with podcaster Theo Von. Vance said that while he thought it was a "huge mistake" for Musk to "go after the president," he hoped Musk "figures it out" and "comes back into the fold." Read the original article on Business Insider
Yahoo
2 hours ago
- Yahoo
Leavitt Downplays Musk and Bessent's Physical Altercation
White House Press Secretary Karoline Leavitt has downplayed reports of a physical bust-up between Elon Musk and Treasury Secretary Scott Bessent. Trump's former chief strategist, Steve Bannon, claimed Musk barrelled into Bessent 'like a rugby player' during an altercation in mid-April. Bessent had reportedly provoked Musk, then still chief of Trump's cost-cutting DOGE drive, by calling the Tesla CEO a 'total fraud' over his pledges to uncover and axe more than $1 trillion in government waste and fraud under the initiative. 'When this story originally broke, I said from the podium that there have definitely been healthy disagreements amongst the cabinet and Elon Musk,' Leavitt told Fox News Sunday. Leavitt conceded there had been times when Musk and the rest of Trump's cabinet 'got frustrated with one another' but said that the president's team was nevertheless able to 'have these robust disagreements and then still come together to do what's right for the people they are serving.' Network host Maria Bartiromo was unwilling to let the question go. 'Did he actually get physical?' she pressed Leavitt. 'Was there a fist fight that he body-checked the Treasury secretary?' Leavitt again downplayed reports of the altercation between the two men and insisted the matter had since been resolved. 'I certainly wouldn't describe it as a fist fight, Maria,' she said. 'It was definitely a disagreement … But again, we've moved on from that. The president has moved on from it.'
