The Direxion Daily TSLA Bull 2X Shares (TSLL), a leveraged ETF tracking Tesla's stock performance, plummeted 5.05% in pre-market trading on Tuesday, following a broader selloff in the electric vehicle (EV) maker's shares.
The decline comes amid concerns over a potential "buyer strike" facing Tesla, as reported by Barron's. Analysts at Morgan Stanley suggest that CEO Elon Musk's increasingly political activity may be turning off the company's core base of politically left-leaning, environmentally conscious buyers.
While the latest weekly insurance registration data from China showed a rebound for Tesla, with 12,400 units registered, the company faces intense competition from domestic EV manufacturers. BYD, a leading Chinese EV maker, registered a staggering 62,400 units, while Xpeng and Li Auto also posted strong numbers.
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