The Direxion Daily TSLA Bull 2X Shares (TSLL) experienced a significant surge of 5.03% in pre-market trading on Wednesday, reflecting growing investor optimism surrounding Tesla's future prospects and delivery expectations.
The rally in TSLL, which provides leveraged exposure to Tesla's stock performance, can be attributed to several key factors. Firstly, Tesla CEO Elon Musk's recent comments regarding the company's upcoming shareholder vote have garnered attention. Musk emphasized that the vote is not primarily about his compensation package but rather about ensuring he maintains sufficient influence over Tesla to guide the company's ambitious robotics plans. This statement underscores Tesla's strategic shift towards robotics and AI, as outlined in the company's Master Plan IV.
Adding to the positive sentiment, Deutsche Bank analysts have projected strong September delivery figures for Tesla in the Chinese market. The bank estimates Tesla will deliver approximately 72,000 units in China this month, representing a significant 27% increase from August. This optimistic forecast suggests Tesla is maintaining its competitive edge in the crucial Chinese EV market despite growing competition.
Furthermore, Morgan Stanley's latest research report has highlighted Tesla's leading position in what they term the "photon race" for real-world visual data collection. The report emphasizes the critical importance of visual data in training next-generation AI models, particularly for autonomous driving and robotics applications. Morgan Stanley maintains an "Overweight" rating on Tesla stock with a target price of $410, indicating potential upside.
Investors are also showing interest in Tesla's technological advancements, as evidenced by the company securing a new patent for production methods likely to be used in the upcoming Cybercab. This development suggests Tesla continues to innovate in its manufacturing processes, potentially leading to improved efficiency and product quality.
As Tesla positions itself at the forefront of both the electric vehicle market and the emerging field of AI-driven robotics, the TSLL's sharp rise reflects growing investor confidence in the company's multifaceted growth strategy and future potential.