Direxion Daily TSLA Bull 2X Shares (TSLL) surged 5.11% in pre-market trading on Friday, reflecting the positive momentum in Tesla's stock. The leveraged ETF, which aims to deliver twice the daily performance of Tesla shares, is benefiting from Tesla's potential third consecutive weekly gain and growing optimism surrounding the company's future prospects.

Tesla's stock was up 0.9% in pre-market trading, outpacing the broader market indices. The electric vehicle maker's shares have shown resilience in recent weeks, despite a challenging first quarter. Investors appear to be focusing on Tesla's commitment to its robotaxi development timeline, with the company still planning to launch a robotaxi service in June.

The renewed investor confidence can be attributed to several factors. First, CEO Elon Musk's statement during the recent earnings call that he would spend less time in Washington and more time at Tesla has been well-received. This commitment to the company's core operations has helped alleviate concerns about Musk's divided attention affecting Tesla's performance.

Additionally, while April sales data from key markets like the U.S., Europe, and China hasn't shown a significant rebound yet, investors seem to be taking a longer-term view. The upcoming robotaxi launch is widely considered a potential catalyst for the stock, with success in this area likely to drive shares higher.

As TSLL provides leveraged exposure to Tesla's performance, its pronounced 5.11% gain underscores the amplified effect of Tesla's positive momentum on related financial instruments. Investors in TSLL should be aware of the increased volatility and risk associated with leveraged ETFs, particularly as Tesla approaches key milestones in its robotaxi development and other strategic initiatives.