The Direxion Daily TSLA Bull 2X Shares (TSLL) surged nearly 10% on Tuesday after Tesla Inc. (TSLA) reported a steep year-over-year decline in second-quarter vehicle deliveries—though the numbers weren’t as bad as some feared.
Tesla delivered approximately 384,000 vehicles during the second quarter, down 13.5% from a year earlier and similar to the 13% drop seen during the first quarter. While the result came in just below the 387,000 vehicle figure analysts were expecting, it was a relief to investors who had braced for an even steeper decline of 20% or more.
Tesla has been under pressure in 2025 due to rising competition in the electric-vehicle space and reputational issues stemming from CEO Elon Musk’s political activity and controversial presence on X. But bulls are betting that the worst may be over.
Musk has dialed back his political involvement and continues to push hard to achieve Tesla’s ambitions in autonomous driving and robotics. The company began small-scale robotaxi services in Austin, Texas, in June, raising hopes that Tesla can evolve into more than just a carmaker and become a broader tech platform powering autonomous vehicles and robotics.
For aggressive traders, TSLL has been one of the most popular tools to bet on a Tesla rebound. The fund has attracted $4.2 billion in inflows this year and now manages $5.5 billion in assets.
But performance has been painful. Despite Tuesday’s rally, TSLL is down 57% year to date, compared to a 22% drop in Tesla shares.
And while the latest delivery numbers weren’t a disaster, they’re unlikely to be a long-term catalyst on their own. Tesla still faces big questions around demand for its EVs and the capabilities of its autonomous vehicle technology.
For now, the stock remains in a holding pattern, which isn’t ideal for a leveraged ETF. Choppy price action can be punishing for funds like TSLL, which aim to amplify short-term moves but often lose ground in sideways markets due to the effects of daily compounding.
TSLL bulls are hoping for a sharp rebound in Tesla shares, perhaps sparked by meaningful progress in the company’s robotaxi rollout or a more dramatic shift in investor sentiment.
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