The Direxion Daily TSLA Bull 2X Shares (TSLL), an ETF that provides leveraged exposure to Tesla stock, plummeted 5.08% in a 24-hour period, reflecting intensifying worries about Tesla's performance and leadership. This sharp decline comes as Tesla faces a multitude of challenges, including a significant year-to-date stock price drop, criticism from prominent investors, and concerns about CEO Elon Musk's focus on the company.

Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management and a notable Tesla investor, voiced strong concerns in a recent interview. Gerber criticized both Tesla's performance and its leadership, stating, "Nobody's made any money in Tesla for a long time." He attributed the company's struggles to Musk's outside activities and political involvement, which he believes have damaged the Tesla brand and alienated potential customers.

Adding to the company's woes, recent data shows Tesla losing ground in California, America's largest electric vehicle market. The automaker'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. The upcoming earnings call could be a critical moment for Musk to address investor concerns and outline a path forward for the embattled electric vehicle maker.