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Tesla Tailwinds Could Propel This New ETF

BY | ETF Database
5:33 am ET 10/29/26 | 14 VIEWS
Experienced Tesla (TSLA) investors know Elon Musk’s company is much more than an electric vehicle (EV) manufacturer. It’s got many nonautomotive irons in its fire that are expected to be legitimate catalysts for the stock.Those include robotaxi, the Optimus robotics platform and perhaps a merger with SpaceX (SPCX), Musk’s other publicly traded company. It’s also widely known that Tesla doesn’t pay a dividend. Investors are waiting for the aforementioned Tesla catalysts to marinate. Meantime, they can earn compensation by way of the Direxion TSLA Defined Income Boost ETF (TSIB). TSIB is an actively managed options-based play on Tesla. It’s designed to deliver twice-monthly “paychecks.” This is a mission the new ETF has accomplished over its first full two months on the market. That is to say, TSIB is doing its job and paying investors to wait on some of Tesla’s longer-ranging ambitions to bear fruit.Work to Be Done, But Signs of ProgressTesla has long been known as a disruptive company. But seasoned investors know it takes time for disruptive technologies to bear fruit. With a compelling income stream, TSIB makes it easier for some investors to be patient with Tesla. Indeed, patience could be a virtue with this stock. “Following earnings we found robotaxi’s progress to be encouraging while Optimus expectations remain fairly low,” noted Deutsche Bank analyst Edison Yu. “More importantly, after Elon Musk’s comments regarding a SpaceX merger, we think this dynamic may be the main driver of Tesla’s stock going forward, likely putting a floor on the share price and essentially serving as a proxy for what premium it would take for a shareholder vote to pass.” Potentially underscoring the utility of TSIB, the analyst points out that there’s much to be accomplished regarding Optimus. Tesla can ramp up production of that robot to 1 million units per year. But it’s a matter of how long it takes to get there.Highlighting the Benefits of TSIBAs for the possibility of SpaceX acquiring Tesla, that’s another catalyst that could take some time. That further highlights the benefits of TSIB as a wait-and-see approach to Tesla. “On the SpaceX 3Q26 earnings call, Elon Musk confirmed that special committees of independent directors have been formed at both companies, at the request of shareholders, to evaluate a combination,” adds Yu. “He was explicit that he is a conflicted party and is not participating in the discussions, while also expressing his support for a combination. Our sense is that a substantial premium may be required to secure the vote and limit the risk of legal challenges (assuming an all-stock deal). Tactically, this may put a floor on Tesla’s share price and the stock essentially serves as a proxy for what premium it would take for a shareholder vote to pass.” For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.

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