The T-Rex 2X Inverse Tesla Daily Target ETF (TSLZ) is experiencing upward movement, driven by a combination of factors affecting Tesla's market outlook. Wall Street analysts have expressed a pessimistic view on Tesla's 2025 sales targets, predicting a modest 16% increase to 2.07 million vehicles, which is below expectations. This sentiment is influenced by several factors, including the potential rollback of U.S. electric vehicle incentives under President Trump's administration, which could impact Tesla's sales volume. Analysts from Morgan Stanley and Barclays have highlighted that a significant portion of Tesla's U.S. sales benefit from these incentives, and their removal could pose challenges for the company.
Additionally, Tesla faces increasing competition from Chinese electric vehicle manufacturers, who offer more affordable and technologically advanced options in various markets. This competitive pressure is compounded by Tesla's current vehicle lineup, which some analysts believe is becoming less exciting, with concerns about the waning appeal of the Cybertruck. Furthermore, Elon Musk's political engagements and close ties with President Trump may also influence consumer sentiment and Tesla's market performance. These factors collectively contribute to a bearish outlook for Tesla, which in turn benefits the inverse ETF tracking its performance.
The T-Rex 2X Inverse Tesla Daily Target ETF (TSLZ) is currently priced at $2.33, reflecting a 1.53% increase from the previous close.