Tesla Options Income ETF Nets 55.5% vs 121.6% Stock Gain Over 3.3 Years
YieldMax TSLA Options Income ETF (TSLY) returned 55.5% from Nov. 23, 2022 to Mar. 5, 2026—less than half Tesla’s 121.6% gain—while charging a 0.99% fee on fully taxable distributions despite $941 million of inflows. Tesla CEO Elon Musk’s “Interesting” reply to Saudi Arabia’s plan to convert its $500 billion Neom city into an AI data-center hub signals potential demand for Tesla’s AI and data infrastructure.
1. Covered-Call ETF Underperformance
Over 3.28 years from Nov. 23, 2022 to Mar. 5, 2026, YieldMax TSLA Options Income ETF returned 55.51% versus Tesla’s 121.58%, despite $941 million of inflows. Even with distributions reinvested and ignoring taxes, the ETF delivered less than half the total return of Tesla shares.
2. 0.99% Expense Ratio and Tax Inefficiency
TSLY charges a 0.99% expense ratio on fully taxable distributions classified as 100% ordinary income, eroding principal when payouts are withdrawn. The high fees and lack of return-of-capital distributions make the strategy costly relative to simply selling Tesla shares to generate income.
3. Musk Highlights AI Hub Opportunity
Tesla CEO Elon Musk replied “Interesting” to suggestions Saudi Arabia could convert its $500 billion Neom megacity into an AI data-center hub. This minimal reaction underscores potential demand for Tesla’s AI computing and Dojo infrastructure if large-scale AI projects gain traction.