The Direxion Daily TSLA Bull 2X Shares (TSLL), an ETF providing leveraged exposure to Tesla stock, plummeted 5.08% in pre-market trading on Monday. This sharp decline reflects growing concerns about Tesla's performance and leadership as the electric vehicle maker grapples with multiple challenges ahead of its earnings report.

Tesla's struggles have been mounting, with its stock price down significantly year-to-date. Investor confidence has been shaken by criticism from prominent figures in the financial world, including Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management. Gerber recently expressed strong concerns about both Tesla's performance and leadership, stating, "Nobody's made any money in Tesla for a long time." He attributed the company's difficulties to CEO Elon Musk's outside activities and political involvement, which he believes have damaged the Tesla brand and alienated potential customers.

Adding to Tesla's woes, recent data shows the company losing ground in California, America's largest electric vehicle market. Tesla's share of the state's EV market fell to 43.9% in the first quarter of 2025, down from 55.5% a year ago. This decline comes amidst reports of protests and vandalism targeting Tesla facilities, further complicating the company's public image and operational challenges. As Tesla prepares to report its earnings on Tuesday, investors will be closely watching for updates on vehicle sales, particularly in China and the U.S., as well as any announcements regarding new products or strategic initiatives that could help turn the tide for the embattled electric vehicle maker.