On September 4, Direxion Daily TSLA Bull 2X Shares declined 8.47% in regular trading, trading near $9.48/share, with turnover of approximately $158 million. The leveraged ETF amplified losses in its underlying stock Tesla, which reversed sharply after rallying over 5% in the prior session.

The selloff was triggered by a combination of two catalysts. First, Tesla officially launched its production Cybercab robotaxi in Austin on September 3, but the event delivered limited incremental information beyond what was already known, falling short of elevated market expectations. The vehicle features a radical design with no steering wheel, no pedals, and no rearview mirrors, relying entirely on its autonomous driving system. Tesla disclosed that the Cybercab fleet has accumulated one million miles of unsupervised autonomous driving and projected per-mile operating costs of $0.20.

Second, the National Highway Traffic Safety Administration launched an audit inquiry into approximately 1,000 Cybercabs sold in the U.S., reviewing the certification process and technical data Tesla relied upon. NHTSA stated it was closely evaluating the situation surrounding the deployment. This regulatory overhang compounded the disappointment from the launch event, further pressuring sentiment.

Direxion Daily TSLA Bull 2X Shares normally invests at least 80% of its net assets in securities of TSLA and financial instruments such as swap agreements and options that provide 2x leveraged daily exposure to TSLA. The fund is non-diversified.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)