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.

Tesla TSLA stock started to slump early Tuesday, reversing premarket gains on the first trading day after Donald Trump’s inauguration. The decline followed the new President’s decision to scrap a pro-EV policy enacted by his predecessor.