Leveraged Tesla ETF rides higher by 10%
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Tesla (NASDAQ:TSLA) topped earnings forecasts on Wednesday afternoon, spurring a rally for the electric vehicle giant on Thursday morning. The news also prompted an even sharper premarket rally in a leveraged exchange traded fund tied to Elon Musk's EV maker.
The GraniteShares 1.25x Long TSLA Daily ETF (NASDAQ:TSL) soared 10% in premarket action compared to a 8.6% rise in Telsa (TSLA) shares.
Single-stock leveraged ETFs have become a popular theme in the ETF space. These investment vehicles are meant to accentuate movement in the underlying stock. 
On the other side of the spectrum, two inverse leveraged single stock ETFs related to TSLA tumbled in premarket trading. The GraniteShares 1x Short TSLA Daily ETF (NASDAQ:TSLI) and the AXS TSLA Bear Daily ETF (NASDAQ:TSLQ) dropped 7.6% and 8.7%, respectively.
A single-stock ETF works by investing in financial instruments, such as swap agreements, that provide additional leveraged and inverse exposure to the underlying stock.
From an earnings report stance, TSLA posted Q4 Non-GAAP EPS of $1.19 which outdid expectations by $0.08. At the same time, the company delivered revenue of $24.32B (+37.2% Y/Y) which was in-line with consensus figures.
While there were some dissenting voices following the earnings report, the bulls took control as record quarterly profit dazzled many investors.