Go to the list of all blogs
Jimmy Landsman's Avatar
published in Blogs
Aug 16, 2026
Direxion Daily TSLA Bull 2X Shares (TSLL) Drops -28% in 30 Days: Tesla Weakness Weighs on the Leveraged Fund

Direxion Daily TSLA Bull 2X Shares (TSLL) Drops -28% in 30 Days: Tesla Weakness Weighs on the Leveraged Fund

Key Takeaways

  • 30-day ETF performance: TSLL declined approximately 28%, falling from $12.22 on July 15 to $8.76 on August 14, as leveraged daily exposure amplified losses in Tesla.
  • Quarterly trend: The fund is down roughly 47% from the May 14 close of $16.65, extending a volatile multi-month drawdown.
  • Primary catalyst: Tesla's second-quarter results, released after the market close on July 22, beat on revenue and deliveries but missed on profitability, triggering a one-day Tesla decline of about 14.5%.
  • Most influential holding: Tesla is effectively the entire equity exposure; the fund's Treasury collateral and total-return swaps exist primarily to deliver the leveraged daily return.
  • Structural consideration: Because TSLL resets leverage daily, compounding in a downward-trending market can make multi-day losses larger than a simple 2x multiple of Tesla's cumulative move.

Overview of the TSLL ETF and Its Holdings

Direxion Daily TSLA Bull 2X Shares is a leveraged single-stock ETF launched in August 2022. It aims for daily results, before fees and expenses, equal to 200% of Tesla's daily performance. Under normal conditions, it invests at least 80% of net assets in Tesla securities and instruments such as total-return swaps and options to achieve that exposure.

The portfolio is non-diversified, typically holding 12 to 14 positions. The largest holdings are usually Treasury and government money-market instruments serving as collateral, including Goldman Sachs Financial Square Treasury Instruments, Dreyfus Treasury Securities Cash Management, and JPMorgan U.S. Treasury securities. Tesla shares and swaps provide the equity exposure, resulting in effectively 100% consumer discretionary sector concentration in one issuer. The fund has a net expense ratio of 0.83% and manages around $5 billion in assets. Because it targets daily multiples rather than longer-term ones, performance over weeks or months depends on the path of returns and can diverge from a simple 2x multiple of Tesla's cumulative move, particularly in volatile conditions. I also checked the holdings breakdown using Tickeron’s AI Screener to confirm the concentration details.

TSLL Price Performance Over the Last 30 Days and Quarter

Using adjusted closing prices, TSLL moved from $12.22 on July 15 to $8.76 on August 14, a decline of approximately 28% over the 30-day period. The drop was not gradual—the fund traded near $11 in late July before gapping lower in one session and then oscillating between roughly $6.70 and $8.80 into mid-August.

The quarterly picture is even weaker. From the May 14 close of $16.65 to the August 14 close of $8.76, TSLL fell about 47%. The pattern featured strength in May, choppiness in June, and a sharp decline after the July earnings release, reflecting a trend-driven, high-volatility selloff rather than a range-bound market. From what I see in the price action, the daily reset mechanism played a clear role in amplifying the move.

Key Drivers of the 30-Day Decline

The main driver was Tesla’s second-quarter 2026 earnings report. Tesla posted record quarterly deliveries of about 480,000 vehicles and revenue of $28.24 billion, both above consensus. However, adjusted EPS came in at $0.33 versus the roughly $0.51 expected, operating income fell 57% year over year to $398 million, and automotive gross margin narrowed to about 16.9% from 21.1% in the prior quarter. Free cash flow turned negative at approximately -$1.09 billion as capital expenditures more than doubled, and regulatory-credit revenue declined by about two-thirds.

Investors focused more on the margin and cash-flow issues than the delivery beat. Tesla shares fell roughly 14.5% the next session, and TSLL, targeting 200% of the daily move, declined about 29% in that single day. Elevated volume during the selloff pointed to repositioning, and some sell-side analysts lowered price targets. The fund’s daily reset then compounded losses during subsequent weakness. I reviewed comparable leveraged vehicles with Tickeron’s AI Pattern Search Engine to put the move in broader context.

Factors Behind the Quarterly Performance

Over the three-month window, the broader story involves a repricing of Tesla’s profit growth expectations amid elevated investment spending. Revenue and delivery momentum recovered, yet lower average selling prices, a mix shift toward lower-priced models, the end of higher-priced Model S and Model X production, reduced regulatory-credit income, and heavy spending on AI, robotaxi, and robotics initiatives all pressured margins. Management guided to more than $25 billion in 2026 capital expenditures, keeping free cash flow under pressure.

Macro factors added to the pressure: ongoing interest-rate uncertainty and softer consumer-discretionary sentiment weighed on long-duration growth stocks, while electric-vehicle competition kept pricing aggressive. For a leveraged single-stock fund, these company-specific and sector headwinds produced outsized downside, with the daily reset mechanism magnifying losses across multiple sessions.

Outlook and What to Watch Next

The main factors likely to shape TSLL going forward are the same ones affecting Tesla. Key items include whether automotive gross margins stabilize, whether capital spending begins to generate clearer revenue visibility in AI, robotaxi, and robotics, and whether free cash flow returns to positive territory. Delivery growth, average selling prices, regulatory-credit income, and energy-storage margins remain important operating metrics.

At the macro level, interest-rate expectations, inflation data, consumer spending, and auto financing conditions will influence the broader backdrop. For TSLL specifically, volatility and the daily reset remain central risks: the fund is built for short-term tactical use, and holding periods longer than one day can produce results that differ materially from twice Tesla’s cumulative performance. Policy changes affecting electric-vehicle incentives, trade, and technology regulation could also shift sentiment. These themes, rather than any single data point, are likely to define the fund’s risk-reward profile ahead.

AI-Powered Screening in My Research Workflow

In my analysis of leveraged products like this one, I frequently use Tickeron’s AI Screener to scan for similar vehicles, compare technical and fundamental metrics, and monitor volatility patterns across the sector. It helps surface relevant candidates quickly without manual sorting, which is especially useful when evaluating concentrated or path-dependent instruments. Explore the AI Screener to refine searches across sectors and strategies.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations

Related Ticker: TSLL

Contributor

My name is Jimmy, and I’m a financial analyst focused on identifying compelling opportunities across the ETF market. Each day, I analyze hundreds of ETFs to uncover potential trading and investment opportunities using a broad range of market factors. For short-term trading, I rely heavily on technical analysis, including price channels, momentum indicators, support and resistance levels, trend patterns, and other market signals. At the same time, I dedicate significant attention to evaluating ETFs from a long-term investment perspective. My objective is to build a well-balanced ETF portfolio that combines core investment holdings with more tactical and speculative positions. The goal is to create a portfolio that can participate effectively in market rallies while also remaining resilient during periods of volatility and market corrections.


TSLL's RSI Oscillator ascends from oversold territory

The RSI Indicator for TSLL moved out of oversold territory on August 03, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 22 similar instances when the indicator left oversold territory. In of the 22 cases the stock moved higher. This puts the odds of a move higher at .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Moving Average Convergence Divergence (MACD) for TSLL just turned positive on August 07, 2026. Looking at past instances where TSLL's MACD turned positive, the stock continued to rise in of 36 cases over the following month. The odds of a continued upward trend are .

Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where TSLL advanced for three days, in of 258 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 183 cases where TSLL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Bearish Trend Analysis

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 50 cases where TSLL's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .

The Momentum Indicator moved below the 0 level on September 04, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TSLL as a result. In of 66 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

TSLL moved below its 50-day moving average on September 04, 2026 date and that indicates a change from an upward trend to a downward trend.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where TSLL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

TSLL broke above its upper Bollinger Band on September 03, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Notable companies

The most notable companies in this group are Tesla (NASDAQ:TSLA).

Industry description

The investment seeks daily investment results, before fees and expenses, of 200% of the daily performance of TSLA. The fund, under normal circumstances, invests at least 80% of its net assets (plus any borrowings for investment purposes) in the securities of TSLA and financial instruments, such as swap agreements and options, that provide leveraged exposure to TSLA. The fund is non-diversified.

High and low price notable news

The average weekly price growth across all stocks in the Direxion Daily TSLA Bull 2X Shares ETF was 2%. For the same ETF, the average monthly price growth was 18%, and the average quarterly price growth was -35%. TSLA experienced the highest price growth at 2%, while TSLA experienced the biggest fall at 2%.
View a ticker or compare two or three
TSLL
Daily Signal:
Gain/Loss:
Interact to see
Advertisement
A.I.Advisor
published price charts
Last 5 trading days
A.I. Advisor
published General Information

General Information

Category Trading

Profile
Details
Category
Trading--Leveraged Equity
Address
Direxion Shares ETF Trust33 Whitehall Street,10th FloorNew York
Phone
866-476-7523
Web
http://www.direxioninvestments.com/
Interact to see
Advertisement
HII is the dominant U.S. Navy shipbuilder, focused on aircraft carriers, submarines, and other major naval vessels, with about 12.0 billion dollars in trailing revenue, 569 million dollars in net income, and EPS of 14.50. The Iran war and threats around the Strait of Hormuz highlight the importance of naval and missile-defense capabilities; reports show interceptor stocks being depleted and stress that keeping sea lanes open will likely require sustained naval investment where HII is a key contractor.
United is a large global carrier with a premium‑focused “United Next” strategy that upgauges to larger, more fuel‑efficient aircraft and adds premium seats to improve margins over the next several years. The Iran war has forced widespread Middle East airspace closures, creating thousands of cancellations, diversions, longer flight times, and higher fuel burn; analysts warn of higher fares and air‑freight rates if the conflict persists.
GE Aerospace is a focused aviation and defense company with two major segments—commercial engines and services, and defense and propulsion—earning most of its profits from long‑duration engine service on an installed base near 80,000 engines. Revenue and earnings growth have been strong, with recent quarterly revenue above 11 billion dollars, up high‑teens year over year, and net income over 2 billion dollars; management guides to 2026 EPS of 7.10–7.40 dollars, well above this year’s roughly 5.4‑dollar consensus.
Shares of Citigroup (C) declined approximately 5.17% in the most recent completed trading session, closing at $110.19 versus a prior close of $116.19. The primary catalyst was hotter-than-expected U.S. Producer Price Index (PPI) data, stoking fears of persistent inflation and a reduced likelihood of near-term Federal Reserve rate cuts.
AVAV surged +16.83% in Monday's session, trading at $294.70 compared to Friday's closing price of $252.25 — a gain of $42.45 per share. The primary catalyst was a powerful confluence of geopolitical demand and corporate developments: the escalating U.S.-Iran military conflict dramatically amplified investor focus on AeroVironment's loitering munitions portfolio.
Shares of Venture Global surged approximately +16.61% on March 2, 2026, closing at $11.30 compared to the prior close of $9.69. The primary catalyst was a stronger-than-expected Q4 2025 earnings report, with GAAP EPS of $0.41 beating the consensus estimate of $0.36 by $0.05.
Shares of CCL plunged 10.11% in Monday's session, falling from a prior close of $31.55 to $28.36. The primary catalyst was a coordinated U.S. and Israeli military strike on Iran over the weekend, causing crude oil prices to surge approximately 8–9% and triggering a global risk-off selloff.
ADT shares dropped sharply — falling as much as 13.4% intraday and hitting a new 52-week low of $6.65 — after reporting Q4 2025 results before the Monday open. Fourth-quarter revenue and guidance both missed analyst expectations, overshadowing an earnings-per-share beat.
Shares of Karman Holdings surged approximately +13.00% in Monday's session, closing near $99.57, up from a prior close of $88.11. The primary catalyst was the release of the company's fourth-quarter and full-year 2025 financial results, which showed strong revenue growth and exceeded top-line expectations.
Netflix dropped out of a months‑long bidding war for Warner Bros Discovery after Paramount/Skydance raised their offer, and Netflix refused to match it, saying the new price was “no longer financially appealing.” The stock jumped roughly 10%+ on the news as investors read this as fiscal discipline—management chose not to overpay, which protects the balance sheet and future returns instead of chasing scale at any price.
SE shares plunged approximately 23% at Tuesday's open, marking one of the steepest single-session selloffs in recent company history. The primary catalyst was a severe Q4 2025 earnings miss: adjusted EPS of $0.63 fell well short of the analyst consensus of $0.80, a miss of roughly 21%.
Shares of Southern Copper Corporation (SCCO) are down 10.32% in Tuesday's session, trading at $196.27 versus the prior close of $218.85 — a single-day loss of $22.58 per share. The primary catalyst is a Bank of America downgrade issued on March 2, cutting SCCO from Neutral to Underperform, which triggered accelerating sell pressure into Tuesday's open.
MDB shares plummeted approximately 26.44% on March 3, 2026, closing around $238.24, down from a prior close of approximately $322.55. The primary catalyst was weaker-than-expected fiscal Q1 2027 guidance, with non-GAAP EPS projected at $1.15–$1.19 versus analyst expectations of roughly $1.46.
Shares of Battalion Oil Corporation (BATL) are surging approximately +130% in Tuesday's session, with the stock hitting a fresh 52-week high as of intraday trading on March 3, 2026. The dominant catalyst is a sharp escalation of U.S.-Israel-Iran military tensions, with Tehran restricting access to the Strait of Hormuz — triggering a spike in crude oil futures and a broad-based energy sector rally.
Shares of CRDO dropped 18.55% on March 3, 2026, falling from a prior close of $114.22 to approximately $93.03. The primary catalyst was a "sell the news" reaction to fiscal Q3 2026 earnings — despite beating consensus estimates on both revenue and EPS, the market sold off on forward margin compression guidance.
PSIX shares plummeted approximately 25.37% on March 3, 2026, closing near $64.00 versus the prior session's close of $85.75. The primary catalyst was the company's Q4 and full-year 2025 earnings report, which revealed Q4 net income fell 31% year-over-year to $16.1 million despite a 33% revenue increase.
Life360 Inc Common (LIF) stunned many traders today as the stock slid more than 20% despite reporting what, on the surface, looked like very strong results: revenue up roughly 32% year over year to about $489.5 million and the company’s first-ever full‑year profitability.
StoneCo Ltd. (STNE) shares dropped more than 15% today after the market reacted negatively to the company’s latest Q4 2025 and full‑year results and its updated outlook. While StoneCo delivered year‑over‑year revenue and earnings growth and even topped EPS expectations, investors focused on weaker‑than‑hoped revenue numbers, rising credit risk metrics, and a more cautious medium‑term guidance profile, which together triggered a sharp rerating of the stock.
Alamo Group reported Q4 2025 EPS of about 1.70 dollars, well below analyst expectations that were in the low‑2 dollar range, producing a sizable negative earnings surprise. Quarterly revenue came in around 373.7 million dollars, down roughly 3% year over year and about 7–8% below consensus estimates near 405 million dollars, signaling softer demand than the market anticipated.
Hycroft Mining Holding Corp (HYMC) shares slid more than 12% today as traders digested the company’s newly filed 2025 annual report, a major corporate update, and an extended development timeline that shifts the story further away from near‑term production and cash flow.