How the Trump–Musk Feud Could Impact These Single-Stock Tesla ETFs

ETFs if you think Trump will win

A Trump win would likely mean renewed political pressure on Elon Musk; something already hinted at through both policy and rhetoric.

Trump has even floated the idea of deporting Musk (which is legally improbable, given Musk’s U.S. citizenship via naturalization), but more realistically, his administration could target Tesla where it hurts: slashing subsidies, floating new tariffs, and recission of regulatory support.

The repeal of the EV tax credit (already included in the One Big Beautiful Bill Act) is a clear sign of where things might go. If Trump wants to hurt Musk without taking direct action, making life harder for Tesla shareholders is one way to do it. That puts pressure on the stock, which in turn weakens Musk’s ability to fund and control his other ventures.

If that scenario plays out, ETFs with inverse exposure to Tesla could benefit. These give you bearish exposure to the stock without the headaches of short selling (no margin calls, no borrow fees) and, unlike puts, you don’t need to worry about Greeks like delta or time decay.

The GraniteShares 2x Short TSLA Daily ETF

is a direct way to express that view. It seeks to deliver twice the inverse of Tesla’s daily return, using swap agreements to achieve that leverage. As with all leveraged ETFs, exposure resets daily, which means performance can drift over time.

TSDD isn’t cheap, with a 2.97% expense ratio, and liquidity isn’t ideal either. It carries a 0.35% 30-day median bid-ask spread, which could eat into returns for short-term traders.

If you want to bet against Tesla but also earn income while doing it, a more exotic alternative is the YieldMax Short TSLA Option Income Strategy ETF

. CRSH doesn’t own Tesla stock either. Instead, it uses a synthetic covered put strategy and buys out-of-the-money Tesla call options as a hedge.

If Tesla stays flat or declines, CRSH collects a premium and pays out a high monthly income. But if the stock rises rapidly, the hedge can fail, especially if Tesla’s share price increases but stays below the strike of the hedged call.

In that case, the ETF can suffer large losses, and the issuer discloses that investors are exposed to up to 100% NAV loss. For now, though, CRSH is yielding 66%, albeit with significant NAV decay.

ETFs if you think Musk will win

For Elon Musk, this is a true uphill battle. He’s no stranger to taking bold swings like buying Twitter outright, launching rockets, building EVs at scale, but taking on the sitting president of the United States is another level entirely. He’s not going to unseat Trump politically, even with the launch of his new American Party.

But a Musk “win” could take a different form: successfully pressuring policymakers, currying favor with disillusioned Trump supporters, or helping reshape the political narrative enough to clear future roadblocks for Tesla and his broader business empire.

For investors who believe Musk will pull this off, there’s no shortage of ETFs to express that view, especially in the leveraged and options-income space.

Among the daily-reset leveraged products, the one I like best is the GraniteShares 1.25x Long TSLA Daily ETF

. It targets 1.25x the daily return of Tesla stock, and while these products aren’t meant to be held long term, the lower leverage makes TSL one of the more stable options.

Think of it as owning Tesla on 25% margin, but without the margin call risk or interest costs. You trade those for a 2.67% expense ratio and the structural quirks of daily reset.

If you’re looking for options-based yield instead of price movement, the YieldMax TSLA Option Income Strategy ETF

is the go-to opposite of the bearish CRSH. But there are some newer entrants I find more compelling. Take the Roundhill TSLA WeeklyPay™ ETF

TSLW

for example.

It provides 1.2x leveraged exposure to Tesla, but instead of resetting daily, it holds its position for a full calendar week, making it better suited for short-term directional bets without the grind of constant compounding drag. Even better, it’s structured as an income-generating strategy, currently paying a 79.68% distribution rate and one of the few ETFs that pays out on a weekly basis.

Finally, if you’re looking for something between high-octane leverage and pure yield, consider the REX TSLA Growth & Income ETF

. It targets a dynamic daily leverage range of 105% to 150%, while deploying a covered call overlay on half the portfolio to generate additional income. That makes TSII a hybrid play, giving you modest leverage on upside with some built-in yield to smooth volatility.

Please note that this article reflects the author’s personal views and does not represent the opinions of the publication or its affiliates. It is for informational purposes only and does not constitute investment advice. It is essential to seek guidance from a registered financial professional before making any investment decisions.