Quiver Quantitative - Investors are keenly focusing on Tesla (NASDAQ:TSLA), with particular attention on the Direxion Daily TSLA Bull 1.5X Shares ETF (TSLL). Despite Tesla's weaker-than-expected earnings report causing a stock price decline, the bullish ETF saw substantial inflows. Specifically, it recorded net daily inflows of $24.9 million as its fund value dropped 14%. Tesla's stock itself decreased by 9.3%, reaching a two-month low. This dip was influenced by CEO Elon Musk's caution about high interest rates affecting the demand for electric vehicles.
Experts suggest that bullish investors are taking advantage of the stock's dip post-earnings, possibly perceiving this as a temporary setback. Todd Sohn, an ETF and technical strategist, noted that given Tesla's divided audience of supporters and skeptics, the bulls are likely seeing the earnings results as a mere interruption. They might be capitalizing on this decline to augment their positions.
For a broader perspective, the Direxion bullish ETF on Tesla has experienced net inflows totaling $501 million this year and has witnessed its price doubling. Meanwhile, Tesla's own shares have surged by 72.3%. On the retail side, Tesla emerged as the top choice, with net purchases amounting to $159.5 million.
In contrast, ETFs betting against Tesla, specifically the Direxion Daily TSLA Bear 1X Shares ETF (TSLS) and the AXS TSLA Bear Daily ETF (TSLQ), each experienced net outflows exceeding $1 million. However, they also saw their fund values rise by over 9%. The market's evolving dynamics also witnessed the launch of new hyper-leveraged single-stock funds targeting Tesla by Rex Shares and Tuttle Capital Management.
This article was originally published on Quiver Quantitative