Direxion Daily TSLA Bull 2X Shares (TSLL) experienced a sharp 5.04% decline in pre-market trading on Wednesday, reflecting growing concerns about Tesla's performance in key markets. The leveraged ETF, which aims to deliver twice the daily performance of Tesla's stock, reacted strongly to a series of negative reports about the electric vehicle maker's sales and market position.

Tesla's struggles in Europe took center stage as multiple countries reported significant year-over-year declines in sales. In the UK, new car registrations for Tesla fell by over 45% compared to the previous year. Similar drops were observed in Germany (-36%), France (-67%), Spain (-29%), and Portugal (-68%). These figures suggest a broader trend of weakening demand for Tesla vehicles across the European market, potentially due to increasing competition and reported consumer backlash against CEO Elon Musk's political stances.

Adding to Tesla's woes, the company continues to face fierce competition in the Chinese market. Reports indicate that Tesla's China-made vehicle sales dropped 15% year-over-year in May, while rival BYD saw a 14.1% increase. The ongoing price war in China's EV market, with BYD recently announcing significant price cuts, is putting additional pressure on Tesla's market share and profit margins. Furthermore, leaked recordings of a Tesla training program revealed concerns about employee morale issues, suggesting internal challenges that could impact the company's performance moving forward.