You've probably seen the headlines about Tesla. One day it's a car company, the next it's an AI powerhouse, and by Friday, Elon is talking about humanoid robots taking over the world. For most investors, the sheer volatility of TSLA stock is enough to cause motion sickness. That’s exactly where the Simplify Volt TSLA Revolution ETF (ticker: TESL) tries to step in.
But honestly? Most people look at this fund and think it’s just another way to bet on Elon Musk. It’s not. Or at least, not in the way you might think.
The Identity Crisis: From VCAR to TESL
First off, let's clear up the name game. If you’ve been hunting for the Simplify Volt TSLA Revolution ETF under the old ticker VCAR, you’re looking at ghosts. As of early 2025, Simplify Asset Management officially ditched the VCAR ticker in favor of TESL.
Why the change? Basically, they wanted to be loud and clear about what’s under the hood. While the original branding focused on "Robocars," the reality is that the fund's fate is tied almost entirely to the price action of Tesla, Inc.
How the Strategy Actually Works (It's Kinda Aggressive)
This isn't your grandfather’s index fund. Most ETFs just buy a bunch of stocks and sit on them. TESL is more like a high-speed chase. It uses what Simplify calls a dynamic exposure algorithm. Depending on what the market is doing, the fund manager isn't just holding Tesla; they are amplifying it or dialling it back.
The fund generally operates in three "gears":
✨ Don't miss: Hinds County Property Search: What Most People Get Wrong
- Aggressive Mode: When momentum is ripping, the fund can crank up to 150% exposure to Tesla. It uses things like the Direxion Daily TSLA Bull 2X Shares (TSLL) and call options to get that extra juice.
- Bullish Mode: A more "standard" 100% exposure.
- Neutral Mode: When things look shaky or uncertain, they actually pull back to 80% exposure.
Think about that for a second. Even in "Neutral" mode, you’re still 80% in. This is a fund for people who believe in the "Revolution" but want a professional to handle the timing of when to hit the gas and when to tap the brakes.
What’s Inside the Portfolio?
If you look at the holdings as of late 2025 and early 2026, it looks more like a cockpit than a portfolio. It’s not just TSLA shares. You’ll find:
- Direct Tesla Common Stock: The foundation.
- TSLA-Linked ETFs: Like the aforementioned TSLL.
- Treasury Bills: Used as collateral for the options and to keep some "dry powder" or stability.
- Options Overlay: This is the secret sauce—or the "advanced options overlay" as the pros call it. They buy put options to hedge against a total meltdown and call options to catch those legendary Tesla vertical spikes.
The Elephant in the Room: Performance and Risk
Let's be real. If you bought this fund in 2022, you felt the pain. The maximum drawdown for this strategy has historically been north of -60%. Tesla is volatile; a fund that occasionally leverages Tesla is incredibly volatile.
However, when Tesla runs, TESL tends to sprint. In 2024, the fund saw returns that dwarfed the S&P 500, largely because the algorithm caught the upward momentum of the "Real World AI" narrative. But you've gotta have a stomach for it. The expense ratio is 0.97%, which is significantly higher than a basic Vanguard fund. You’re paying for the active management and the cost of all those options contracts.
Is It Still a "Revolution" Fund?
The name "Revolution" isn't just marketing fluff. Simplify and their partners at Volt Equity built this on a "first principles" thesis. They aren't looking at Tesla as a car company that makes 2 million EVs a year. They are betting on the FSD (Full Self-Driving) software and the Optimus robotics project.
Critics argue that by focusing so heavily on one ticker, the fund lacks diversification. That’s true. It’s a "non-diversified" fund by definition. If Elon Musk has a bad day or regulators put a permanent stop to autonomous driving, TESL doesn't have a "Plan B." It’s a concentrated bet on a specific technological future.
Why the Options Overlay Matters
Most retail investors try to "hedge" by just keeping cash. TESL tries to do it with math. By using put options, the fund attempts to create a floor. It won't stop you from losing money if Tesla drops 10% in a week, but it’s designed to prevent a "zero" scenario during a true black swan event.
On the flip side, the call options allow the fund to participate in "convexity." That’s a fancy way of saying when the stock goes up, the fund can theoretically go up faster because the options gain value exponentially.
Actionable Insights for Investors
If you're looking at the Simplify Volt TSLA Revolution ETF, don't just "buy and forget." Here is how to actually approach it:
- Check the Ticker: Make sure your brokerage is showing TESL, not the defunct VCAR.
- Size it Correctly: Because of the 150% leverage potential, even a 5% allocation in your total portfolio can feel like 10% or 15% on a bad day. Treat it as a "satellite" holding, not a core one.
- Watch the Momentum: This fund performs best in trending markets. In a "sideways" market where Tesla just bounces around, the cost of the options (time decay) can eat into your returns.
- Understand the Tax Man: Because it uses swaps and options, the tax treatment can be different than a standard stock. Expect some capital gains distributions, even if the price hasn't moved much.
Tesla is currently trading near $437 (as of mid-January 2026), and the volatility isn't going anywhere. If you want the Tesla exposure but want a system that theoretically trims the sails during a storm, TESL is the specific tool for that job. Just don't expect a smooth ride.