TSLL Short Interest Falls 37.8% in December — Direxion Daily TSLA Bull 2X Update
Direxion Daily TSLA Bull 2X (TSLL) short interest fell 37.8% to 20,084,863 shares by Dec 31. Read our update on TSLL sentiment, risk, and trading implications.
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Direxion Daily TSLA Bull 2X Shares (NASDAQ: TSLL) saw a notable shift in market sentiment at the end of December. Short interest in TSLL plunged 37.8% between December 15 and December 31, falling from 32,273,744 shares to 20,084,863 shares. That decline leaves roughly 6.1% of the fund’s outstanding shares sold short — a meaningful drop for a leveraged ETF tied to Tesla exposure.
Why the TSLL short interest decrease matters
Short interest is a common gauge of bearish conviction and potential short-squeeze risk. A 37.8% reduction in TSLL short interest suggests traders trimmed bearish positions or covered shorts heading into year-end. For active traders watching TSLL short interest updates, this signals reduced downside pressure from short sellers and potentially less immediate squeeze risk, though conditions can change quickly in leveraged products.
Context for leveraged ETF investors
Direxion Daily TSLA Bull 2X is a leveraged ETF designed to deliver twice the daily performance of its underlying exposure. That leverage amplifies gains and losses and can increase volatility, especially when combined with shifts in short interest. Investors should view TSLL short interest data alongside other indicators — trading volume, implied volatility, and Tesla’s price action — before making decisions.
What traders may consider
Momentum traders might interpret the decline in short interest as a bullish tilt among market participants, while risk managers may see it as a reason to reassess hedges. Long-term investors should remember that short interest is a short-term sentiment snapshot and less relevant for buy-and-hold strategies. Always weigh TSLL short interest updates with broader market trends and your risk tolerance.
Bottom line
The December short interest update for Direxion Daily TSLA Bull 2X (NASDAQ: TSLL) — a 37.8% drop to 20,084,863 shares and 6.1% of shares sold short — highlights a notable shift in trader positioning going into year-end. For traders and investors in leveraged ETFs, monitoring short interest alongside liquidity and volatility metrics remains essential to navigate fast-moving markets.
Published on: January 17, 2026, 12:05 pm
