Tesla ETF Skyrockets as EV Maker Nears Record Highs

It took three years, but shares of Tesla are knocking on the door of all-time highs once again. On Monday, shares of the electric vehicle company briefly soared to $405, just short of their all-time closing high of $409.97 set in November 2021.

In turn, the highly popular Direxion Daily TSLA Bull 2X Shares (TSLL) also spiked—to as much as $29, above the all-time closing high of $27.35 set shortly after the ETF’s launch.

TSLL debuted in August 2022 and has consistently been one of the most popular single-stock leveraged exchange-traded funds on the market since then.

The ETF was the first single-stock ETF to hit $1 billion in assets under management, a feat it achieved in July 2023. 

The fund maintained a committed investor base despite a bumpy road for Tesla’s stock. After reaching a record high of nearly $410 in November 2021, shares of Tesla dropped to $108 in January 2023.

TSLA Stock Shares Reach Record Highs

From there, they nearly tripled to $293 in July 2023 before tumbling to $142 in April of this year.

Since putting in its lows in the spring, Tesla shares have climbed rapidly. First on hopes that the electric vehicle market was reaching a bottom, then on hopes about Tesla’s robotaxi, and finally after Trump secured an election win thanks to strong backing from Tesla CEO, Elon Musk.

TSLL fell as low as $5 in April, while AUM dropped to $557 million at that time.

Since then, the fund’s price has risen sixfold while its assets under management has surged eightfold to $4.3 billion.

The fund has seen inflows of almost $400 million this year, while its seen inflows of $1.3 billion since its launch in 2022. 

However, the ETF has lost its single stock ETF crown to the GraniteShares 2x Long NVDA Daily ETF (NVDL), which has $6 billion in assets under management thanks to inflows of $3.1 billion this year.