Direxion Daily TSLA Bull 2X Shares (TSLL), a leveraged ETF that tracks Tesla's stock performance, plummeted 5.18% in pre-market trading on Tuesday. This sharp decline reflects growing investor concerns surrounding Tesla's upcoming robotaxi launch, declining vehicle sales, and mixed analyst sentiments.

The significant drop in TSLL, which aims to deliver twice the daily performance of Tesla's stock, comes as Tesla faces multiple challenges. Analysts remain divided on the potential success of Tesla's self-driving taxi service, scheduled to launch in Austin, Texas on June 22. CFRA analyst Garrett Nelson expects the launch to be "largely anticlimactic," while Piper Sandler's Alexander Potter anticipates "upward momentum" for the stock.

Adding to the pressure, Tesla is grappling with declining vehicle sales. The company is expected to deliver about 400,000 cars in the second quarter, down 10% from the same period last year. This follows a 13% drop in first-quarter deliveries. Wells Fargo analyst Colin Langan noted that "fundamentals are coming in worse than expected," citing concerns about reduced zero-emission vehicle credit sales that could impact earnings and cash flow. Meanwhile, increased competition in the global EV market, particularly from Chinese manufacturers like BYD, is challenging Tesla's market dominance. These factors collectively contribute to the amplified downward movement of the leveraged TSLL ETF, highlighting the heightened risk associated with such investment vehicles during periods of market uncertainty.