Direxion Daily TSLA Bull 2X Shares (TSLL) experienced a sharp 5.06% after-hours plunge on Wednesday following Tesla's release of its second-quarter earnings report. The leveraged ETF, which aims to deliver twice the daily performance of Tesla stock, dropped in response to Tesla's disappointing financial results.
Tesla reported second-quarter revenue of $22.5 billion, down 12% year-over-year and slightly below analyst expectations of $22.79 billion. Earnings per share came in at $0.40, missing forecasts of $0.43 and representing a 23% decline from the same period last year. The company's automotive revenue, which accounts for the majority of its business, fell 16% to $16.66 billion.
Despite the earnings miss, Tesla did show some positive signs. The company's gross margin improved to 17.2% from 16.3% in the previous quarter, though still below last year's 18%. Tesla also reiterated its plans to begin production of a more affordable vehicle model in the second half of 2025, which could potentially drive future growth. However, the overall results and near-term challenges, including reduced regulatory credit income and potential impacts from changes in EV incentives, seem to have overshadowed these positives, leading to the sharp decline in the leveraged ETF.
