Tesla erases $700 billion ‘Trump bump’ as sales slide globally.

Expectations that the electric-vehicle maker would benefit from CEO Elon Musk’s close relationship with President Donald Trump made its stock one of the top gainers following the Nov. 5 election. That bet, however, has been no match for growing anxiety about Tesla’s core business of selling cars.

Tesla’s shares were down 4.6% at 11:53 on Friday, on track to erase their entire $700 billion post-election advance. The decline comes alongside a series of blows that have shaken investor confidence in recent weeks, from a January report showing that sales dropped for the first time in a decade last quarter to more recent evidence of Tesla losing its dominant position in Europe and China. Some investors have also grown worried that Musk’s foray into politics has become a distraction from his job as the EV-giant’s CEO.

The broader market environment is also proving a headwind, with the speculative frenzy that pushed stocks to record highs following the election smothered by worries over US trade policy and economic growth. The S&P 500 is down more than 7% from its high while the Nasdaq 100 has tumbled into a correction.

Bank of America analyst John Murphy on Tuesday slashed his price target on the stock to $380 from $490, noting concerns about new car sales, lack of news on a potential low-cost model and risk to the company’s robotaxi launch.

Source: FORTUNE