Direxion Daily TSLA Bull 2X Shares (TSLL), an exchange-traded fund (ETF) designed to deliver twice the daily performance of Tesla's stock, soared 11.72% 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 $152 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 OK," adding that "It's going very well, never done 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 11.72% gain compared to more modest gains expected in Tesla's shares themselves.