Direxion Daily TSLA Bull 2X Shares (TSLL), an exchange-traded fund (ETF) designed to deliver twice the daily performance of Tesla's stock, soared 8.26% in pre-market trading on Friday. This significant uptick comes on the heels of a tumultuous week for Tesla, marked by a public feud between CEO Elon Musk and President Donald Trump that sent shockwaves through the market.

The surge in TSLL's value reflects a potential rebound in Tesla's stock, which suffered a devastating 14% drop on Thursday. That plunge, which wiped out approximately $150 billion in market value, was largely attributed to the escalating war of words between Musk and Trump. The conflict centered around Trump's proposed "Big Beautiful Bill" legislation, which Musk vehemently criticized for its potential impact on the federal deficit and the electric vehicle industry.

However, Friday's pre-market rally suggests that investors are sensing a possible de-escalation of tensions. According to reports from Politico, White House aides have scheduled a call between Trump and Musk, indicating efforts to facilitate reconciliation. When asked about the public falling out with Musk, Trump responded, "Oh, it's okay," adding that "The progress is going very well, it has never been better."

This potential cooling of hostilities appears to have reassured investors, leading to the sharp rise in TSLL's value. As a leveraged ETF, TSLL amplifies the daily movements of Tesla's stock, explaining the outsized 8.26% gain compared to more modest gains expected in Tesla's shares themselves.

While the pre-market surge is encouraging for Tesla bulls, investors should remain cautious. The situation remains fluid, and the outcome of any potential reconciliation between Musk and Trump is far from certain. Additionally, leveraged ETFs like TSLL can be highly volatile and are typically designed for short-term trading rather than long-term holding.