Direxion Daily TSLA Bull 2X Shares (TSLL) experienced a sharp 5.01% pre-market plunge on Thursday, reflecting ongoing concerns surrounding Tesla's stock performance and market position. The leveraged ETF, which aims to provide twice the daily performance of Tesla's stock, has been hit hard by recent developments in the electric vehicle (EV) market.

The decline can be attributed to several factors affecting Tesla. Firstly, Tesla's stock was down 1.4% in pre-market trading, breaking a four-day winning streak. This comes after a tumultuous period where Tesla lost about $150 billion in market capitalization following a public feud between CEO Elon Musk and President Donald Trump. Although the stock has partially recovered, it remains down about 6% since the end of May, indicating persistent investor concerns.

Adding to the pressure is Tesla's declining market share in the EV sector. According to recent data, Tesla's estimated market share of U.S. EV sales has fallen from 75% in early 2022 to under 45% in the first quarter of 2025. This significant drop reflects increasing competition from both established automakers and new EV entrants.

Furthermore, uncertainty surrounds Tesla's upcoming robotaxi launch, scheduled for later this month. While the launch could potentially be a game-changer for Tesla, many questions remain unanswered about the scale of the initial rollout, oversight measures, and how the service will expand beyond its initial launch in Austin, Texas. This uncertainty may be contributing to investor caution, as reflected in the TSLL's pre-market plunge.