Controversy And Opportunity Provide Fuel For Direxion's Tesla Bull And Bear Funds

On the surface, Tesla Inc. TSLA would appear to stand on steady, if not enviable ground. As the leading brand among top-selling electric vehicles, legacy automakers continue to chase the relative newcomer. This fact is all the more impressive when considering the strong incentives issued by automotive giants, which include compelling leasing deals. As well, both federal and state programs help sweeten the pot.

Adding to the fundamental enthusiasm for TSLA stock, U.S. electric vehicle sales hit a record 1.3 million units last year. What's more, despite Tesla seeing some weakness in market share, the top two EV models were from the company that bears the name of the enigmatic engineer, futurist and inventor; specifically the Model Y, which sold 372,613 units and the Model 3, which sold 189,903 units.

Demonstrating incredible pricing power, the Tesla Cybertruck landed in fifth place with 38,965 units sold. The desirable but simultaneously polarizing EV currently commands an MSRP of just under $80,000. Even with the challenging economy, many consumers can't get enough of the manufacturer's products.

Still, evidence is brewing that not everything is moving along swimmingly. Most conspicuously, Tesla CEO Elon Musk has consistently dived head-first into political controversy, supporting now-President Donald Trump throughout the 2024 campaign trail. Moreover, Musk's embracing of Trump and his policies — which sometimes clash with the broader EV rollout — could be hurting TSLA stock.

According to the 2025 global brand rankings from Brand Finance, Tesla fell to 36^th place in this year's profile, down from the prior year's 18^th place. What's worse, the EV maker had a brand value of $43 billion in the 2025 rankings, down 26% from $58.27 billion in 2024.

Over the trailing one-month period, TSLA stock has given up 15% of equity value. However, some analysts are still sounding the alarm, believing that the security may have some ways to go before finding rock bottom. With public hostility growing toward the Tesla brand, it's possible that Musk may have pushed the needle too far.

The Direxion ETFs: Despite the drama surrounding Tesla, the tug-of-war provides fuel for financial service giant Direxion's bull and bear exchange-traded funds focused on TSLA stock. For the optimists, the Direxion Daily TSLA Bull 2X Shares TSLL offers leveraged exposure to the EV sector leader. For those on the opposite side of the spectrum, the Direxion Daily TSLA Bear 1X Shares TSLS facilitates a contrarian medium.

Primarily, both TSLL and TSLS deliver convenience to speculators. The bulls can enjoy the profit-boosting potential of leverage while the bears can effectively take a short position against TSLA stock, all without engaging the options market. With either ETF, traders can acquire fund units, much like a standard security of a publicly traded enterprise.

However, investors should note one caveat: neither the TSLL nor the TSLS fund are designed for long-term exposure. Instead, Direxion recommends a position to be held for no longer than one day. Extending exposure beyond this framework may lead to a decoupling of performance against the underlying benchmark due to the daily compounding effect of volatility.

The TSLL ETF: Thanks in large part to Tesla's impressive sales performance in 2024, it's no surprise that TSLL gained 115% over the trailing year.

Critically, the TSLA bull fund popped its head above the technically and psychologically significant $20 level.
However, investors should note that TSLL is sandwiched between the 50-day moving average at the top and the 200 DMA below.

The TSLS ETF: On the other side of the coin, TSLA's blistering run has devastated the bears, with TSLS losing about 63% in the past 52 weeks.

Although the TSLA bear fund has struggled in recent sessions, it's nearing a technical threshold at the $9 level.
Far removed from the 200 DMA (which stands at just over $15), TSLS is interestingly above its 50 DMA, suggesting the buildup of near-term momentum.