Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTRyne MauckFri, July 31, 2026 at 11:25 PM GMT+2 4 min readQuick ReadTSLL's daily reset mechanism triggers volatility decay, meaning this 2x ETF can lose money even when TSLA trends upward.Over five years, TSLA gained 43% while TSLL lost 65%, making direct stock ownership the clear winner for long-term investors.Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Tesla didn't make the cut. Grab the names FREE today.The Direxion Daily TSLA Bull 2X Shares ETF (NASDAQ:TSLL) promises to deliver twice Tesla's daily returns, making it an appealing choice for investors looking to amplify gains in one of the market's most volatile stocks. However, many investors overlook one critical detail: TSLL is built to track Tesla's daily performance, not its long-term returns.That distinction matters. Tesla has historically experienced enormous price swings, including multiple declines of 40% or more followed by powerful recoveries. While long-term Tesla shareholders have often been rewarded for staying invested, those same swings can work against leveraged ETFs because of their daily reset mechanism. Over weeks or months, TSLL can lose value even if Tesla (NASDAQ: TSLA) ultimately finishes higher.2023 Getty Images / Getty Images News via Getty ImagesBefore buying TSLL, it is crucial that investors understand how Tesla's volatility interacts with leveraged ETF mechanics. In many cases, the biggest risk isn't simply that Tesla stock price falls; instead, it's that the stock becomes too volatile, even while trending upward.Tesla has been one of the stock market's biggest success stories over the past decade. Since its 2010 IPO, the stock has generated gains of well over 20,000%, going from a relatively small EV manufacturer into one of the world's most valuable companies. Long-term shareholders who held throughout all of the volatility have been rewarded with extraordinary returns.Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Tesla didn't make the cut. Grab the names FREE today.However, those gains have come with equally extraordinary price swings. Tesla has experienced multiple drawdowns exceeding 40%, including a decline of roughly 74% between November 2021 and January 2023 before eventually recovering to new highs. Even during strong bull markets, double-digit moves over a matter of days or weeks have been common for the stock, making Tesla one of the most volatile mega-cap stocks in the market.This volatility is precisely why leveraged ETFs such as TSLL behave differently than the underlying stock itself. Large daily price swings can cause returns to diverge over time, meaning investors may not receive twice Tesla's long-term performance, even when the stock ultimately trends higher (a phenomenon known as volatility decay).Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info