Huge TSLQ Inflows Signal Big Bets Against Tesla
- Some ETF traders are ramping up their bets against Tesla.
- TSLQ, the inverse Tesla ETF, had inflows of $110 million Monday.
- In Q1 2025, Tesla posted its weakest quarterly revenue in nearly three years.
Some ETF traders are ramping up their bets against Tesla Inc. (TSLA) as shares of the electric-vehicle maker rebound from recent lows.
On Monday, the Tradr 2X Short TSLA Daily ETF (TSLQ) saw a record $110 million in inflows, the largest single-day haul in the fund’s history. The move suggests that traders are positioning for another leg down in Tesla shares, which have recently bounced back toward the upper end of their trading range.
TSLA Stock Tumbles
It’s been a rough year for the EV maker. From its December 2024 peak to its March 2025 low, Tesla stock was cut in half as investor enthusiasm over its futuristic ventures—like autonomous driving and humanoid robots—faded amid mounting concerns about the company’s core EV business.
During the first quarter of 2025, Tesla posted its weakest quarterly revenue in nearly three years, with total sales down 9% year over year. Automotive revenue fell even more sharply, tumbling 20% from the same period a year earlier.
Tesla CEO Elon Musk’s association with the Trump administration has sparked backlash and boycotts both in the U.S. and abroad. Rising competition in China and a generally risk-off mood in the stock market have further weighed on the company.
TSLQ Goes for a Ride
For traders in TSLQ, it’s been a roller coaster. At its highest point in March, the ETF was up more than 160% year to date, benefiting from Tesla’s dramatic plunge. But while the stock has retested those lows multiple times since, each subsequent peak in TSLQ has been lower than the last—a consequence of the daily rebalancing decay typical of leveraged ETFs.
Today, TSLQ is up just 2% year to date, despite Tesla shares still trading down around 30% on the year.
That’s a cautionary tale: Leveraged ETFs like TSLQ are designed for short-term trading, not long-term holding. Over time, the drag from daily compounding can erode returns, even when the directional bet is right.
But the payoff can be significant for traders who time it well. TSLQ quickly rallied 37% and 55% during Tesla’s last two pullbacks.
With Tesla now hovering near $285, toward the top of its recent $220 to $290 trading range, traders may be betting that history will repeat itself. As always with leveraged ETFs, the stakes are high, and so are the risks.
