The Direxion Daily TSLA Bull 2X Shares (TSLL), a leveraged ETF tracking Tesla's stock performance, plummeted 11.4% in intraday trading on Tuesday, mirroring the broader selloff in the electric vehicle (EV) maker's shares.

The sharp decline in TSLL can be attributed to multiple challenges facing Tesla, as evidenced by recent news reports:

First, Tesla is facing intensifying competition in its key markets. In China, the company's sales plummeted 49% year-over-year in February, according to data from the China Passenger Car Association. This slump comes as domestic EV makers like BYD, Xpeng, and Li Auto are gaining ground, with BYD registering a staggering 62,400 insurance units last week, compared to Tesla's 12,400.

Furthermore, Tesla's dominance in the U.S. market is being challenged by the launch of driverless ride-hailing services by Uber and Waymo, directly in Tesla's backyard of Austin, Texas. This move could potentially impact Tesla's future growth prospects in the ride-sharing and autonomous driving sectors.

Another factor weighing on Tesla's stock is the growing concern over a potential "buyer strike," as reported by Morgan Stanley analysts. CEO Elon Musk's increasingly political activity may be turning off Tesla's core base of environmentally conscious buyers, who have traditionally been drawn to the company's mission of promoting sustainable transportation.