Tesla Inc.’s stock shed early gains Tuesday that came on expectations that Chief Executive Elon Musk’s close relationship with the new administration will help the electric-vehicle maker, with sentiment further buoyed by a bullish note from Piper Sandler.

Shares of Tesla Inc. slumped Tuesday alongside other electric-vehicle makers, while space company stocks saw big gains, after President Donald Trump announced a series of policies that could have wide-ranging impacts on markets.

Shares of Tesla Inc. dropped nearly 3% on Tuesday morning, the first trading day after Donald Trump’s second inauguration as U.S. President. During his inauguration speech on Monday, Trump vowed to dismantle Environmental Protection Agency (EPA) rules requiring automakers to sell all-battery electric vehicles (EVs) to avoid severe emissions-related fines.