Direxion Daily TSLA Bull 2X Shares (TSLL), an ETF that tracks twice the daily performance of Tesla (TSLA) stock, surged 5.03% in after-hours trading on Tuesday. This move came after Tesla announced several incentives aimed at boosting demand for its electric vehicles amid signs of a slowdown in sales during the first quarter of 2025.

Tesla, facing a traditionally slower start to the year, has taken more aggressive measures to revitalize sales. The company is offering free lifetime supercharging on Foundation Series Cybertrucks purchased after February 28, as well as 0% APR financing or zero due at signing for Model 3 orders. Additionally, Tesla is advertising discounts on older Model Y units as it ramps up production of a refreshed version.

While these incentives indicate weaker-than-expected demand, investors appear to have interpreted them as a positive sign that Tesla is taking proactive steps to stimulate sales. The stock's after-hours surge suggests optimism that the company's measures could successfully revive demand and lead to a stronger second quarter performance.