Electric vehicle maker Tesla, Inc.'s (NASDAQ:TSLA) shares fell sharply in premarket trading on Wednesday, with the downside attributable to the across-the-board negative sentiment in the market.

Cantor Fitzgerald analyst Andres Sheppard said EV market share in the U.S. edged up from 7.2% a year ago to about 8% in the second quarter, with Tesla's market share edging down from 52.3% in the first quarter to 49.7% in the second quarter. The analyst raised his second-quarter revenue estimate for Tesla from $24.67 billion to $24.85 billion, factoring in the sales beat reported earlier this month.

The Future Fund LLC's Gary Black said on Tuesday that the company "still offers a good setup into 2Q earnings next week," reasoning that estimates have not gone up notably despite the second-quarter deliveries upside and that valuations, though elevated, were in line with the historical norms.

The weakness relayed by the premarket trend could be due to the aggravation of negativity toward mega-cap tech stocks amid a sector rotation out of these and into small-cap stocks that have underperformed in the current bull market.

Tesla is scheduled to report its quarterly results after the market closes on Tuesday.

In premarket, the stock fell 2.28% to $250.72, according to Benzinga Pro data.