The Direxion Daily TSLA Bull 2X Shares (TSLL), a leveraged exchange-traded fund (ETF) that provides 2x daily exposure to Tesla Inc. (TSLA) stock, suffered a sharp 5.07% plunge in the 24-hour period ending Sunday. The sell-off is likely driven by mounting concerns surrounding Tesla's business prospects and a growing backlash against the company and its CEO, Elon Musk.

One major factor weighing on Tesla's stock is the company's declining sales in China, a key market for electric vehicles. According to a report from Bloomberg, Tesla's shipments in China plunged 49% year-over-year in February, marking the fifth consecutive month of declines. This raises concerns about Tesla's ability to maintain its growth momentum in the world's largest automotive market.

Furthermore, Elon Musk's recent controversial statements regarding the US potentially exiting the NATO alliance have drawn criticism, raising concerns that he may be alienating some of Tesla's core customer base, which tends to skew towards left-leaning, environmentally conscious buyers. As an analyst from GMO pointed out, some Tesla owners in liberal enclaves like Berkeley, California, are considering selling their vehicles due to Musk's political stances.