GraniteShares ETFs
Tesla (TSLA) remains one of the most volatile and talked-about stocks, driven by electric vehicles, autonomous driving, AI, robotics, and Elon Musk’s vision. One option, mainly for non-US investors, to gain leveraged exposure to Tesla is simply to invest in CFDs, where you can either buy or sell the stock short.
However, for bullish or bearish investors looking to amplify exposure, buy downside protection, or earn income without trading stocks or options, there are a number of interesting listed investments to consider. The beauty of this is that they offer retail investors a way to gain exposure to strategies that are very difficult to replicate.
GraniteShares Long Tesla ETFs
The investment company offers five exchange-traded funds (ETFs) that provide exposure to Tesla. The simplest to understand are the GraniteShares 1.25x Long TSLA Daily ETF (NASDAQ: TSL) and the GraniteShares 2x Long TSLA Daily ETF (NASDAQ: TSLR). The aim of which is to return 1.25x and 2x the daily return of Tesla stock, before fees and expenses. However, since they are daily leveraged ETFs, their main benefit is for short-term bullish Tesla trades.
GraniteShares 2x Short TSLA Daily ETF
In a similar vein, the GraniteShares 2x Short TSLA Daily ETF (NASDAQ: TSDD) aims to generate minus 2x the daily return of Tesla stock. This simply means that if Tesla stock loses 1% on a given day, the ETF aims to return 2% to investors; conversely, a 1% gain in Tesla stock should result in a 2% loss in the ETF. Consequently, this ETF is for short-term bearish Tesla trades.
GraniteShares YieldBOOSTTM TSLA ETF
This is a risky investment by any estimate. The ETF’s objective is to generate income for investors by achieving “2 times (200%) the income generated from selling options on Tesla Inc.’s common stock.”
A put option is an option to sell a stock at an agreed price within a certain time limit. The buyer pays the seller a premium for the option. They are bought by bearish investors who want to sell a stock at, say, $200 after it has dropped to $150 and pocket the $50 difference.
It follows that a seller of a put option will lose money when the stock drops sharply, and given that the GraniteShares YieldBOOSTTM TSLA ETF (NASDAQ: TSYY) is actually selling options on leveraged Tesla ETFs, it’s leveraged to losses on Tesla stock..
On the other hand, when the stock is flat or rising, this ETF will generate significant income, enabling weekly distributions to investors. All told, it’s a way to generate high-yield income for neutral or mildly bullish investors in Tesla, but beware the significant downside risk of a crash in Tesla stock prices.
GraniteShares Autocallable TSLA ETF
Finally, this ETF aims to “generate potential monthly income by investing in a portfolio of single-stock autocallable options linked to the performance” of Tesla stock. The GraniteShares Autocallable TSLA ETF (NASDAQ: TLA) pays a monthly income and is actively managed. Launched in early 2026, it’s an interesting product for retail investors because it brings structured products to retail investors – strategies typically reserved for institutional investors.
It aims to generate a high monthly income by issuing coupon payments if the stock stays above the “coupon barrier”, a predefined price. If Tesla stock performs well and trades above the “autocall barrier,” the autocallable is canceled (no coupon is paid), and the ETF reinvests in a new autocallable.
Finally, if Tesla’s stock is above the “maturity barrier”, typically a longer-term and lower price than the coupon barrier, then the investor is not exposed to the downside. However, if it does fall below the maturity barrier, the investor will be directly exposed, leading to significant losses.
Investing thoughts
Investors might wonder “why Tesla” when considering the relatively complex strategy followed by the last two ETFs, and they might have a point. They are actively managed ETFs, and although they rely on Tesla’s traditional stock price volatility to generate premiums and coupons, it’s hard to think of what else is intrinsic to Tesla about them.
In contrast, the long and short ETFs clearly do manifest views on Tesla, and perhaps they suit the mindset of the Tesla investor.
The article is for educational purposes only and doesn’t constitute financial advice. CFD trading is not available in all countries. Check local regulations and consult a licensed advisor if necessary.