Tesla investors were rattled Thursday by escalating tension between CEO Elon Musk and President Donald Trump, and the company’s stock plunged, wiping billions off the company’s market value.

Amid the late-afternoon war of words, shares of Trump’s Media and Technology Group also fell after Musk hinted at ties between the president and Jeffrey Epstein, the deceased financier and sex offender.

Shares of Tesla fell 14.3% for the day as Musk ramped up his public criticism of the House Republican domestic policy bill, calling it an “abomination.” The tumble — the company’s worst day since March and its second worst since 2020 — wiped out about $150 billion from Tesla’s market valuation.

A dispute over the policy bill spiraled in a matter of hours into a broader rupture in Musk’s relationship with the president, raising concern among investors about how the tensions might harm Musk’s businesses. Trump threatened to slash federal contracts and tax subsidies for Musk’s companies, which amount to billions of dollars.

The Republican spending bill would end a $7,500 tax credit from the federal government that has helped reduce the cost of buying electric vehicles. Trump said Thursday that Musk was upset about the electric vehicle tax credit repeal — a claim that Musk swiftly rejected.

The latest drop in Tesla’s shares adds to several months of turbulence for the company. Its stock rallied in the aftermath of Trump’s election, before falling in the early months of this year as consumer protests against Musk’s role in the Trump administration intensified.

The tax credit repeal would hurt Tesla, which is the largest seller of electric vehicles in the United States. It could amount to a $1.2 billion hit to Tesla’s annual profit, according to JPMorgan analysts. Ending the credits would come as Tesla sales fall, the result of consumer backlash to Musk’s political involvement and the brand’s lack of new, more affordable models.

Tesla wasn’t the only stock to plummet as the feud unfolded.

DJT, the stock ticker for Trump’s Media and Technology Group, also fell Thursday, dropping 8%. The sell-off accelerated after Musk claimed the administration had stalled on releasing more of the government’s files on Epstein because Trump’s name would appear in them.

— Associated Press

U.S. trade deficit falls sharply after tariffs

U.S. imports of foreign made goods fell sharply in April compared with the previous month, as tariffs clamped down on global trade.

Much of the 16.3% drop from March reflected the fact that importers had rushed to bring many goods into the United States at the beginning of the year, before President Donald Trump could impose tariffs that would raise the price of foreign products. That resulted in a record surge in imports and in the trade deficit in the first three months of the year.

U.S. factories and businesses also significantly cut their purchases of foreign machinery and other supplies. Imports from China, a major source of machinery and consumer goods, hit a five-year low.

Exports rose slightly, up 3% from the previous month, buoyed by an outflow of gold. Investors for months had been stockpiling gold bullion from Switzerland in case Trump restricted its flow.

ECB lowers rates for eighth time

The European Central Bank cut its benchmark interest rate for an eighth time, aiming to support businesses and consumers with more affordable borrowing as U.S. President Donald Trump’s trade war threatens to slow already tepid growth.

The bank’s rate-setting council cut interest rates by a quarter of a point Thursday at the bank’s skyscraper headquarters in Frankfurt. Analysts expected a cut, given the gloomier outlook for growth since Trump announced a slew of new tariffs April 2 and subsequently threatened to impose a crushing 50% tariff, or import tax, on European goods.

— From news services