Analysts say investors are targeting this ETF, probably to take advantage of the leverage provided by the fund.
Since this year, Tesla's stock price has fallen by nearly 30%, but this has also attracted a wave of investors to bottom out.
On February 6, according to media reports, it was not Tesla stock itself that investors went to bottom, but an ETF fund --$DIREXION DAILY TSLA BULL 1.5X SHARES (TSLL.US)$.
The media quoted Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, as saying that investors are targeting this ETF, probably to take advantage of the leverage provided by the fund.
The reason behind Tesla's recent stock price setback is that it is full of negative news. In the newly announced earnings season, Tesla was the only “Big Seven in Tech” whose results for the fourth quarter of 2023 did not exceed market expectations.
So much so, Brandon Michael, a senior investment analyst at ABC Funds (ABC Funds), came out and said:
“Now there are only the 'six sisters' in tech stocks.”
Additionally, on February 5, local time, German enterprise application software provider SAP removed Tesla from its automotive supplier list. SAP team leader Steffen Krautwasser told the media that Tesla's price fluctuations made planning more difficult and posed higher risks. Also, Tesla usually delivers before the agreed time, which causes trouble for customers. The exit of SAP meant that Musk's efforts to expand the corporate car market were thwarted.
Affected by this, Tesla's US stock market plummeted by about 7% on Monday, causing the cumulative decline in its stock price over the last five trading days to more than 10%, while the decline in just over a month from the beginning of the year to now has reached about 30%.
Editor/phoebe