The Direxion Daily TSLA Bull 2X Shares (TSLL) experienced a sharp 14.82% plunge on Wednesday after Tesla reported disappointing first-quarter delivery numbers. The leveraged ETF, which aims to deliver twice the daily performance of Tesla stock, tumbled as investors reacted to the electric vehicle maker's worse-than-expected results.
Tesla reported deliveries of 336,681 vehicles for the first quarter, falling significantly short of analyst expectations of around 378,000. This marked a 13% year-over-year decline, representing Tesla's worst quarterly drop in deliveries in the company's history. The company attributed part of the shortfall to production disruptions related to updates for its popular Model Y vehicle.
Analysts were quick to express their disappointment with Tesla's performance. Wedbush's Dan Ives called the results "a disaster on every metric" and warned that Tesla CEO Elon Musk must "stop this political firestorm" to refocus on the company. The sharp decline in deliveries has raised concerns about potential brand damage stemming from Musk's political activities and their impact on consumer demand. However, Tesla shares rebounded later in the day on reports that Musk may soon step down from his role in the Trump administration, potentially alleviating some investor concerns.
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