The decline in Tesla shares has started to worry long-term investors. Talks about the company dropping below $200 are now circulating on Wall Street.

The fluctuation in Tesla shares has raised doubts among long-term investors. After rapidly rising following Trump’s election victory, Tesla shares lost momentum due to the actions of CEO Elon Musk, who is responsible for the Department of Government Efficiency (DOGE), and his support for far-right political parties in Europe. The company most affected by the recent selling wave on the US stock market was Tesla. President Donald Trump purchased a new Tesla to support Musk. Trump had previously stated about the protests against Tesla, “This guy has dedicated his energy and life to do this, and I think he’s been treated unfairly.” Tesla shares, which fell by 15% on Monday, have lost more than 50% in value since their peak in December. After reaching $480 on December 18, Tesla dropped to $222. With this performance, expectations among Tesla investors that Musk would benefit from his closeness to the president have also faded.

Analysts argued that the company’s performance has caused concern even among loyal investors. Wall Street analysts have started to update their target prices, indicating that the stock could drop below $200.