Tesla (NASDAQ:TSLA) topped earnings forecasts on Wednesday afternoon, spurring a rally for the electrical vehicle giant on Thursday morning. The news also prompted a good sharper premarket rally in a leveraged exchange traded fund tied to Elon Musk’s EV maker.
The GraniteShares 1.25x Long TSLA Day by day ETF (NASDAQ:TSL) soared 10% in premarket motion in comparison with a 8.6% rise in Telsa (TSLA) shares.
Single-stock leveraged ETFs have develop into a well-liked theme within the ETF space. These investment vehicles are supposed to accentuate movement within the underlying stock.
On the opposite side of the spectrum, two inverse leveraged single stock ETFs related to TSLA tumbled in premarket trading. The GraniteShares 1x Short TSLA Day by day ETF (NASDAQ:TSLI) and the AXS TSLA Bear Day by day ETF (NASDAQ:TSLQ) dropped 7.6% and 8.7%, respectively.
A single-stock ETF works by investing in financial instruments, resembling swap agreements, that provide additional leveraged and inverse exposure to the underlying stock.
From an earnings report stance, TSLA posted Q4 Non-GAAP EPS of $1.19 which outdid expectations by $0.08. At the identical time, the corporate delivered revenue of $24.32B (+37.2% Y/Y) which was in-line with consensus figures.
While there have been some dissenting voices following the earnings report, the bulls took control as record quarterly profit dazzled many investors.