The Direxion Daily TSLA Bull 2X Shares, an exchange-traded fund (ETF) that tracks Tesla's stock performance, plummeted by 5.08% on Thursday intraday trading. The fund's decline mirrors the challenges faced by the electric vehicle (EV) maker, Tesla Inc.
According to analysts, Tesla's recent challenges stem from multiple factors, including increased competition in the EV market, concerns about the company's reliance on data centers, and uncertainties surrounding its autonomous driving technology.
One of the key concerns highlighted by Jim Cramer, the host of Mad Money, is Tesla's dependence on data centers for its operations. As the data center industry undergoes significant changes, with a Chinese company offering a more cost-effective solution, it could impact companies like Tesla that rely heavily on data centers for their technological advancements.
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