Earnings season is approaching, leveraged ETFs have become a tool to gamble on Tesla’s performance
The second-quarter financial report will be released after the market closes on July 22, and investors are paying close attention to whether this performance report can promote the market for related exchange-traded products. On the eve of the release of the financial report, Tesla's stock price has been under pressure, falling nearly 12% year-to-date. The current trading price is below all key moving averages, showing a weak technical signal. However, institutions’ expectations for second-quarter performance are not pessimistic: the market expects Tesla’s earnings per share to be US$0.52 and revenue of approximately US$25.81 billion, both of which will increase compared with the same period last year. The previously announced second quarter delivery volume reached 480,126 vehicles, far exceeding Wall Street expectations of approximately 406,000 vehicles, a year-on-year increase of 25%, laying the foundation for performance. For short-term traders who want to gamble on financial market trends, leveraged and inverse ETFs provide tool options. The Daily Tesla Long 2x ETF (TSLL) launched by Direxion aims to achieve double the return of Tesla's single-day performance, while the Daily Tesla Short 1x ETF (TSLS) tracks the reverse single-day performance. In addition, the Simplify Volt Tesla Revolution ETF (TESL) adopts an active management strategy and allocates at least 80% of its assets to Tesla-related securities, including stocks, swap contracts and call options. The focus of market attention is not limited to the automotive business itself. Morningstar analyst Seth Goldstein pointed out that as Tesla begins a large-scale capital expenditure cycle to build AI infrastructure, free cash flow indicators will become the focus; in addition, Robotaxi expansion plans, Optimus humanoid robot progress and changes in gross profit margins may become key variables that trigger fluctuations in related ETFs after the financial report. Wall Street's views on Tesla are clearly divided. According to TipRanks data, the stock has a consensus rating of "Hold" and an average price target of $399.71, implying only about 1.4% upside potential. But some analysts have raised their target prices to $500, believing that the potential Tesla-SpaceX merger and the long-term value of the AI business will be the core drivers of the stock price.