The Trump effect on the stock market is fading, and Elon Musk is the first victim. On Tuesday, February 25, Tesla's valuation fell below the $1 trillion mark, after dropping by 8% during the day. The primary cause lies with Chinese consumers, who seem unimpressed by Tesla's new semi-automated driving system that has failed to live up to Musk's promises.

Since a December high of $488, Tesla shares have fallen 38%. They now stand only 20% above the price reached on the day of Donald Trump's election. This decline is unsurprising: the share price had surged due to Musk's close ties with Trump, as traders anticipated swift regulatory approval for Tesla's autonomous vehicles.

This is not the case for the moment and Tesla's sales are falling, penalized by declining demand for electric cars and Musk's extremism, which is damaging his brand image. While he remains the world's richest man at $380 billion, his fortune has shrunk by around $100 billion.

Generally speaking, the "Trump bump," the stock market surge that followed the election, is well and truly over. The tech-rich Nasdaq is down 6% from its December 16 high. The S&P 500, which represents America's largest companies, is down 3.2% since its record high on February 19.

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