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Dear Fellow Investor,
Tesla Rebound Trade Update: 3 Ways We’re Cashing In on the Comeback
Back on April 24, we alerted readers to what we believed could be a major turning point for Tesla (NASDAQ: TSLA). At the time, the stock had been battered, down sharply from its November 2021 highs of around $475 to a recent low of $225. But we believed that the electric vehicle titan was about to rebound—fast.
We noted three key catalysts:
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Elon Musk was stepping back from Dogecoin and reaffirming his focus on Tesla. This alone sent a strong message to investors who had grown concerned about his divided attention.
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Wedbush analysts raised their price target on TSLA to $350, assigning it an “Outperform” rating. Their upgrade was based in part on Musk’s recommitment to the company and the promise of a reenergized product roadmap.
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Technically, TSLA was oversold and had started consolidating around $238. This suggested the selling pressure had dried up, creating a launchpad for a rally.
At the time, TSLA was trading near $255.
Today, Tesla is flying. The stock has surged to $347.77, within striking distance of the $350 target. And momentum continues to build. If the current trend continues, we believe Tesla could retest $400 in the near term, and longer-term, we still have our sights set on a potential return to $500.
That’s nearly a 100% rally from the lows—and exactly the type of rebound trade we look for.
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Cheaper Alternatives to TSLA Stock That Are Also Delivering
Not everyone can afford to tie up capital in TSLA shares directly. That’s why, in our April 24 issue, we also highlighted two leveraged or income-based ETF alternatives that track Tesla’s performance and offer compelling upside potential.
ETF: Direxion Daily TSLA Bull 2x Shares (SYM: TSLL)
For traders looking to supercharge their exposure to Tesla’s upside, TSLL is a standout. This 2x leveraged ETF is designed to return 200% of the daily performance of TSLA. So when Tesla rises 5% in a day, TSLL aims to rise 10%.
When we first mentioned it, TSLL was trading around $10.75.
Today, it’s up to $15.22, a 41% gain in under a month. That’s the power of leverage—and exactly why we keep TSLL on our watchlist during times of anticipated volatility or major breakouts.
A quick note for newer investors: leveraged ETFs like TSLL are best suited for short- to medium-term trades. Their compounding effect means performance can diverge from expected returns over longer timeframes, especially in choppy markets. But when a name like Tesla is trending decisively higher—as it is now—ETFs like TSLL can be incredible tools.
TSLL carries an expense ratio of 0.95%, which is typical for leveraged products, and trades with solid liquidity.
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ETF: YieldMax TSLA Option Income Strategy ETF (SYM: TSLY)
Our second pick, TSLY, is a very different play—but equally compelling.
Rather than try to beat Tesla’s returns with leverage, TSLY focuses on generating monthly income by writing covered calls on TSLA. This options-based approach provides consistent cash flow in exchange for capping the ETF’s upside.
On April 24, TSLY was trading at $8.32. Today, it’s up to $9.22—a respectable 10.8% gain. But the real appeal here is the yield.
TSLY currently offers a distribution yield of 104.35% (annualized) and has a monthly payout. Its most recent dividend of $0.76 per share was paid out on May 16 to shareholders of record as of May 15.
Even if the share price stays relatively flat from here, the monthly income potential makes TSLY attractive to yield-seeking investors who want Tesla exposure but prefer a more conservative or income-focused strategy.
One more point of clarification: TSLY doesn’t directly own TSLA shares. Instead, it uses derivatives (primarily call options) to simulate exposure and generate premiums. This structure allows it to pay such a high monthly yield, although the tradeoff is reduced capital appreciation during big TSLA rallies. Still, TSLY’s performance has been solid—and it’s delivering exactly as promised.
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