Despite staying relatively stagnant for the first half of the year, Tesla’s stock has experienced a resurgence in the second half. Bullish traders are certainly relishing the rally, providing opportunities to amp up their trades with single-stock exchange traded funds with leverage.
Tesla’s stock is up almost 30% the past month, still riding on the post-U.S. election wave with founder and CEO Elon Musk’s involvement in the newly planned presidential advisory commission known as the Department of Government Efficiency (DOGE). Having the support of the federal government can certainly help Tesla’s cause in projects like self-driving cars. Of course, the electric automaker must first fine-tune the technology to minimize accidents.
“I think it’s nice to have federal government support technology versus hindering it, which is what they’re doing now,” said Tesla investor Ross Gerber, who also co-founded investment firm Gerber Kawasaki. “But where Tesla fits in all of this has nothing to do with Donald Trump and federal regulation. A bird has to fly for it to be a bird.”
If Tesla is successful in unlocking the full potential of self-driving, otherwise known as full self-driving or FSD, it could also be a strong revenue driver, thereby shoring up income on the balance sheet. Yahoo Finance noted that FSD accounted for $326 million of its revenue in the third quarter as the company currently charges an initial $8,000 deposit and $99 per month for an FSD subscription.
Of course, the challenge with FSD is the regulatory hurdles the technology must clear to bring the technology to the masses. This is where Musk’s involvement in the federal government could help grease the proverbial regulatory wheels that could be beneficial to Tesla’s FSD rollout.
Trade Both Sides of Tesla’s Stock
As previously mentioned, if the euphoria in Tesla stock continues, bullish traders can amp up their trades with single-stock ETFs from Direxion. When Tesla moves higher, consider using the Direxion Daily TSLA Bull 2X Shares (TSLL).
On the opposite end of the trade, seasoned traders know that having flexibility is a must to profit from a stock that’s trending higher or lower. On that note, traders can take advantage of Tesla’s price dips via the Direxion Daily TSLA Bear 1X Shares (TSLS). If the electric automaker has an unfavorable earnings report or other negative news, TSLS allows traders to take advantage of the short-term price pullbacks.
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