The Direxion Daily TSLA Bull 2X Shares (TSLL) experienced a significant pre-market plunge of 9.23% on Thursday, following Tesla's disappointing first-quarter delivery report and concerns over new tariffs announced by President Trump. This leveraged ETF, which aims to deliver twice the daily performance of Tesla stock, amplified the negative sentiment surrounding the electric vehicle maker's latest 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 expressed disappointment with Tesla's performance, with Wedbush's Dan Ives calling the results "a disaster on every metric."
Adding to the pressure on Tesla and the broader market, President Trump announced the implementation of new tariffs on Wednesday evening. The announcement included steep levies on trade partners, particularly affecting the technology sector. This development has raised concerns about potential impacts on Tesla's supply chain and overall operations, contributing to the negative sentiment reflected in the TSLL ETF's pre-market plunge.
Investors are now closely watching for Tesla's full first-quarter financial results, scheduled for release on April 22, to gain further insights into the company's performance and outlook. The market will be particularly interested in any updates regarding Tesla's autonomous driving initiatives and plans to address the challenges highlighted by the disappointing delivery figures. Additionally, reports suggesting that CEO Elon Musk may step back from his role in the government have added another layer of uncertainty to Tesla's near-term prospects.
Comments