Tesla ETFs' Gains in Focus Ahead of Robotaxi Debut

Single-stock ETFs present potential risks and rewards for active traders.

The investing community is zeroing in on electric carmaker Tesla Inc. and the much-anticipated robotaxi event, scheduled for Oct. 10 in Los Angeles.

For those folks investing in Tesla stock the old-fashioned way this might look like a potential boost for shares that are up just 2.6% this year–part of a volatile ride that includes a 46% gain over the past six months.

But in the ETF space, thanks to the incarnation of single-stock ETFs, this robotaxi event looks like the perfect opportunity for some white-knuckle envelope pushing.

If there weren’t already a raft of single-stock ETFs featuring aggressive leveraged and inverse exposure to Tesla stock, you could bet issuers would be in full scramble mode to push something through the Securities and Exchange Commission ahead of next week’s invitation-only event.

But, alas, in the ETF space today, there are multiple strategies aimed at capitalizing on the volatility of Tesla stock.

As always, we remind investors to proceed with caution when dabbling in the wilds of leveraged and inverse single-stock strategies because they are for active traders and/or people who don’t worry about their blood pressure levels.

Now, with all those overt warnings out of the way, let’s look at some of the available ways to ride a potential Tesla wave.

TSLL, TSLS Offer Different Approaches

There is the Direxion Daily TSLA Bull 2X Shares (TSLL), the T-Rex 2X Long Tesla Daily Target ETF (TSLT) and there’s the GraniteShares 2X Long TSLA Daily ETF (TSLR).

Or if you want to bet against Elon Musk and his claim that the robotaxi unveiling will mark Tesla’s biggest innovation since the company’s Model 3 electric vehicle debuted nine years ago, there are single-stock ETFs for that, too.

There’s the Direxion Daily TSLA Bear 1X Shares (TSLS), the T-Rex 2X Inverse Tesla Daily Target ETF (TSLZ) and the GraniteShares 2X Short TSLA Daily ETF (TSDD).

And if you’re looking for a little Tesla ride without the thrills and spills, there’s always the Kurv Yield Premium Strategy Tesla TSLA ETF (TSLP), which is almost the opposite of what one might expect from a single-stock Tesla ETF.

Unlike its counterparts that are designed to soup up the daily bets, TSLP generates income with a covered call strategy that tamps down the performance in both directions.

The tradeoff is monthly distributions that compare to a dividend yield in the 25% range.

Not bad for a stock known for big ups and big downs, and not an official dividend yield to be found.