Direxion Daily TSLA Bull 2X Shares (TSLL) surged 7.46% in pre-market trading on Tuesday, as investors responded positively to recent developments surrounding Tesla and its CEO Elon Musk. The leveraged ETF, which aims to deliver twice the daily performance of Tesla stock, is benefiting from multiple factors boosting sentiment around the electric vehicle maker.

The primary catalyst for the surge appears to be Elon Musk's announcement that he has returned to Tesla full-time. In a tweet over the weekend, Musk stated he was "back to spending 24/7 at work and sleeping in conference/server/factory rooms," signaling his renewed commitment to the company. This move has been interpreted as a positive sign for Tesla's future growth and innovation, particularly in the realm of artificial intelligence (AI) and autonomous driving.

Adding to the optimism, Tesla is set to launch its self-driving taxi service in Austin, Texas, next month. This development is seen as a potential game-changer for the company, with Wedbush analysts Dan Ives and Sam Brandeis stating, "We believe the vast majority of valuation upside looking ahead for Tesla is centered around the success of its autonomous vision taking hold with a key June launch in Austin the beginning of this next era of growth for Musk and Tesla."

Furthermore, it was revealed that Viking Global Investors, led by billionaire Ole Andreas Halvorsen, purchased 350,084 shares of Tesla stock during the first quarter of 2025. This vote of confidence from a prominent hedge fund manager has likely contributed to the positive sentiment surrounding Tesla.

The surge in TSLL comes despite challenges faced by Tesla in some markets, with reports indicating that its sales in the European EV market halved last month amidst growing competition. However, investors seem to be focusing on the company's long-term potential, particularly in AI and autonomous driving, rather than short-term market fluctuations.

As Tesla continues to push the boundaries of electric vehicle technology and AI integration, the Direxion Daily TSLA Bull 2X Shares ETF remains a popular choice for investors looking to amplify their exposure to the company's potential growth. However, as with all leveraged ETFs, investors should be aware of the increased volatility and risks associated with such investments.