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Why is TSLZ Down Today After Regulatory Scrutiny

The T-Rex 2X Inverse Tesla Daily Target ETF (TSLZ) closed at $2.51 on January 8, 2025, experiencing a slight decline of 0.4% as Tesla's stock faced pressure from regulatory scrutiny. Tesla's shares fell 0.25% to $393.39 amid news of a new investigation by the National Highway Traffic Safety Administration (NHTSA) into 2.6 million vehicles equipped with the "Actually Smart Summon" feature. This probe follows previous concerns over Tesla's Full Self-Driving system, adding to the company's regulatory challenges. The NHTSA's evaluation could lead to further scrutiny of Tesla's autonomous technologies, impacting investor sentiment. Additionally, BofA Global Research's downgrade of Tesla from "Buy" to "Neutral" due to valuation and execution risks has contributed to the cautious outlook.