GraniteShares 2x Long TSLA Daily ETF (TSLR) seeks to provide daily investment results that correspond to twice (200%) the daily performance of Tesla Inc. stock. This single-stock leveraged ETF amplifies both gains and losses of Tesla shares on a daily basis through derivatives and swap agreements.
How It Works
TSLR uses financial derivatives including swaps and futures contracts to achieve 2x daily exposure to Tesla stock movements without directly owning Tesla shares. The fund resets its leverage daily at market close, meaning each trading day starts fresh with 2x exposure regardless of previous performance. GraniteShares actively manages the derivative positions to maintain the target leverage ratio, with holdings primarily consisting of cash collateral and derivative instruments rather than equity securities.
Key Features
- Provides 2x amplified exposure to Tesla stock movements, allowing traders to potentially double their daily gains or losses
- Daily reset mechanism ensures consistent 2x leverage each trading day, preventing leverage drift over time
- Recently launched in August 2023, offering a new tool for Tesla-focused tactical trading strategies
Risks
- This ETF can lose value rapidly due to daily compounding effects—if Tesla drops 10% then rises 10%, the fund does not return to break-even
- Tesla's high volatility can cause extreme daily swings, with potential for 20-40% single-day moves in either direction amplified to 40-80%
- Single-stock concentration risk means any Tesla-specific negative news, regulatory issues, or earnings disappointments directly impact 100% of holdings
Who Should Own This
Designed exclusively for active traders with very high risk tolerance and intraday to weekly time horizons. Suitable only as a tactical trading tool (1-5% allocation maximum) for investors seeking short-term Tesla momentum plays. Requires daily monitoring and is inappropriate for buy-and-hold strategies or retirement accounts.