Tesla is down over 20% for the year, but the rest of the electric vehicle (EV) industry isn’t necessarily following that same trajectory. In countries like China, they’re witnessing growth in EV sales. That’s paving the way for global opportunities in the EV sector.

Compared to the first three months of 2024, Tesla delivered 50,000 fewer vehicles this year. The common theme appears to be that CEO Elon Musk’s activities outside of the EV industry could be hampering the company’s performance due to diverted attention from its leadership.

“The Street and us knew a bad 1Q was coming but this was even worse than expected,” said Dan Ives of Wedbush Securities, via a CNN report. “This quarter was an example of the damage Musk is causing Tesla. This continues to be a moment of truth for Musk to navigate this brand tornado crisis and get onto the other side of this dark chapter for Tesla.”

For bears, this creates an opportunity to pounce with the Direxion Daily TSLA Bear 1X Shares (TSLS). Having an inverse position allows traders to also profit from price dips and downturns for added market flexibility.

Of course, Tesla’s downtrend is always subject to change. That said, traders should also look at the Direxion Daily TSLA Bull 2X Shares (TSLL) when the stock trends higher again.

China Witnesses EV Growth

While Tesla is one of the biggest names in the EV industry, it’s not representative of the entire industry. China, for example, is seeing its EV industry expand exponentially.

Names like BYD are poised to challenge Tesla for the top EV maker. The company is already having a strong first quarter with better-than-anticipated sales. CNN reported that BYD “sold just over one million new-energy vehicles in the first three months of 2025 – including battery-powered cars, hybrids and commercial vehicles.”

“Sales of electric vehicles worldwide have been growing and the largest manufacturer of EVs is China’s BYD,” reported NPR. “Their global revenue was over $100 billion in 2024, beating Tesla.”

That said, traders may be able to find more bullish options outside of Tesla and the domestic automotive industry. For a broader option without the overconcentration risk tied to one stock like Tesla, traders can also use the Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares (EVAV). The fund seeks to achieve 200% of the daily performance of the Indxx US Electric and Autonomous Vehicles Index.

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