TSLL is a leveraged ETF that seeks to deliver 2x the daily performance of Tesla stock using options and futures contracts.

Is TSLL a good long-term investment?

TSLL is not designed for long-term holding due to time decay. Over time, it tends to lose value even if Tesla stock remains flat.

Why does TSLL lose value over time?

TSLL uses derivatives like options and futures, which experience time decay. This decay causes the ETF to lose value over time, especially during volatility.

What are alternatives to TSLL for Tesla investors?

Long-term Tesla investors may consider holding TSLA stock directly or using long-dated options (LEAPS) or margin strategies as alternatives to TSLL.

Is $TSLL a Trap? Some Thoughts

Rebellionaire Staff
Jul 11
2 min read

Let’s break this down.

TSLL is a leveraged ETF that promises 2x Tesla’s daily performance. Sounds exciting, right? For traders maybe. But for long-term investors? It’s a problem waiting to happen.

Here’s the deal: TSLL is built using derivatives—options and futures—to chase that 2x daily move. But there’s a cost to that leverage: time decay. Over the long run, TSLL tends to lose value, even if Tesla stays flat.

From August 2022 to mid-2025, Tesla’s stock price was basically unchanged. TSLL during that same stretch? Down over 56%.

That’s not a typo. Same underlying stock. Same time frame. Drastically different result.

The Numbers Don’t Add Up

Let’s look at calendar years. In 2023, Tesla rose 102%, and TSLL gained 140%. That’s solid, but still not double. In 2024, Tesla climbed 62.5%, while TSLL gained 99.6%. Again, not 2x.

Over time, that performance drift adds up.

TSLL tends to overperform only if you time your entry and exit almost perfectly. Like buying Tesla at its lowest point in 2023 and selling at its high in July. If you nailed that window, TSLL was up 306%—massive. But that kind of precision? Rare. Most investors don’t buy bottoms and sell tops. And holding too long during a drawdown can be punishing.

In late 2022, for example, Tesla dropped 63%. TSLL dropped nearly 80%.

Recovery from that? Not so simple. Tesla only needs to double to recover. TSLL would have to nearly quadruple just to break even.

It’s Popular. That Doesn’t Mean It’s Safe.

TSLL has over $6.3 billion invested in it. Clearly, a lot of people are drawn to it. But popularity doesn’t equal suitability. Most investors just aren’t aware of how leveraged ETFs really work.

This is not a buy-and-hold product. It’s not built for conviction plays. It’s built for short-term trades by investors who fully understand the risk.

A Smarter Way to Play Tesla?

Report titled "REBELLIONAIRE" with Tesla performance vs. clients, highlighting 93.70% client gain and disclaimer on risks and investment strategies.

If you believe in Tesla for the long haul, owning the stock directly may be a better fit. For those looking to add leverage responsibly, tools like long-dated options (LEAPS) or margin—used within a clear plan—can be alternatives.

At Rebellionaire, we work with investors who want to grow their Tesla exposure over time. Our approach focuses on long-term strategy, not short-term speculation.

As of June 18, 2025, our strategy has delivered 6.58% more than Tesla stock year-to-date. Since our inception in March 2022, we’ve averaged 5% more per year compared to Tesla stock over that timeframe. We don’t chase daily moves—we build over time.

If you’re holding TSLL thinking it’ll double your gains long-term, it might be time to reconsider. And if you’re unsure what the right Tesla strategy is, we’re here to help.

This content is for informational purposes only and does not constitute investment advice. Investing involves risk, including the potential loss of principal. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions.