For years, Tesla, Inc. (NASDAQ:TSLA) was the centerpiece of what many traders viewed as the ultimate Elon Musk investment. Now, according to Direxion CEO Douglas Yones, Space Exploration Technologies Corp. (NASDAQ:SPCX) could become the next chapter in what he calls the “all things Elon” trade.
“Traders look to Direxion to trade all things Elon with conviction,” Yones told Benzinga.
The comment comes as SpaceX begins life as a publicly traded company, opening the door for investors who previously had limited ways to gain exposure to Musk’s space venture.
From TSLA To SPCX
Yones said Direxion’s experience with Tesla helped shape its approach to SpaceX.
“TSLL has been the largest leveraged TSLA ETF since its inception,” he said, referring to Direxion’s leveraged Tesla ETF, Direxion Daily TSLA Bull 2X ETF (NASDAQ:TSLL).
That success helped convince the firm that investor demand for Musk-linked trades extends beyond electric vehicles. Just a day after SpaceX stock started trading, they’ve launched their leveraged bet on the Musk-owned space stock, Direxion Daily SpaceX Bull 2X ETF (NYSE:LOFF).
“LOFF merely expands our offering as he leads another publicly traded company out from his private empire,” Yones said.
Main Street Meets Wall Street
Unlike many high-profile IPOs, Yones sees SpaceX attracting interest from both retail traders and institutional investors.
“That both retail and institutions are clamoring for exposure makes this IPO incredibly exciting for both Main Street and Wall Street,” he said. The scale of investor interest has also stood out.
“While other high-profile IPOs have certainly had retail traders attention, it is safe to say nothing has come close to this magnitude,” Yones said.
For investors, that may be the biggest takeaway. SpaceX is not simply another IPO. If Tesla created one of the market’s most passionate investor communities, SpaceX may be testing just how far the “all things Elon” trade can go.
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