Direxion Daily TSLA Bull 2X Shares (TSLL), a leveraged ETF designed to deliver twice the daily performance of Tesla stock, plunged 5.09% in a 24-hour period on Friday. This sharp decline reflects growing concerns about Tesla's valuation, potential sales peak, and uncertainties surrounding its autonomous driving initiatives.

The significant drop in TSLL can be attributed to a cautious stance taken by Barclays on Tesla. Despite raising their price target for Tesla from $275 to $350, Barclays maintained a "Neutral" rating, suggesting nearly a 20% downside from Tesla's current stock price. Barclays analyst Dan Levy highlighted that Tesla is caught between two narratives: the promise of an "AI-driven future growth" and a "slowdown in the automotive business." The firm warned that Tesla's robust third-quarter performance might have been driven by "pulled-forward demand" before the expiration of an electric vehicle tax credit, potentially marking a sales peak.

Adding to the bearish sentiment, there are growing uncertainties about Tesla's Robotaxi program. Gary Black, managing director of Future Fund LLC, predicted that CEO Elon Musk might not address key questions about Robotaxi safety during the upcoming earnings call. This comes amid an ongoing NHTSA investigation into Tesla's Full Self-Driving (FSD) technology over traffic violations and accidents. The combination of these factors has likely contributed to the amplified decline in TSLL, as leveraged ETFs tend to exaggerate the movements of their underlying assets.