Direxion Daily TSLA Bull 2X Shares (TSLL) experienced a sharp 24-hour plunge of 20.40% in the night session, as Tesla Inc. grapples with multiple challenges that have sent its stock tumbling. The leveraged ETF, which aims to deliver twice the daily performance of Tesla's stock, has been hit hard by the automaker's recent woes.
Tesla's troubles stem from a perfect storm of issues, including disappointing first-quarter deliveries, the impact of President Trump's new tariffs, and a growing brand crisis linked to CEO Elon Musk's involvement with the Trump administration. The company reported Q1 deliveries of just under 337,000 vehicles, falling short of Wall Street expectations and marking a 13% year-over-year decline. This represents the lowest delivery figure since 2022, raising concerns about Tesla's growth trajectory in the face of increasing competition.
Adding to Tesla's challenges, President Trump's recently announced tariffs are expected to significantly impact the company's costs and global competitiveness. Wedbush Securities analyst Dan Ives, a long-time Tesla bull, slashed his price target for the stock by 43%, from $550 to $315, citing the "double-whammy" of tariffs and brand issues. Ives estimates that Tesla may have already lost at least 10% of its future customer base globally due to these self-created brand problems. The analyst urged Musk to "step up, read the room, and be a leader in this time of uncertainty," highlighting the growing pressure on Tesla's CEO to address the company's mounting challenges.
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