Tesla Sees Five-Day Surge — Despite Big Tech Tensions
Tesla shares closed Tuesday up for the fifth session in a row, notching a 0.5% gain to reach $340.84. For context: both the S&P 500 and Dow Jones indexes were up 1.1%. All this comes as Elon Musk escalated his war of words with Apple, threatening legal action. Musk accuses Apple of unfairly restricting competition in its App Store. On his X social media platform, Musk didn’t mince his words:
“Apple has not just put its thumb on the scale, but its entire body,” Musk declared.
Musk vs. Apple: The Real Target Is AI
While it might look like Tesla vs. Apple on the surface, the real battle is between Musk’s AI company, xAI, and Apple. Investors are watching closely—after all, xAI has apps like X and Grok listed in Apple’s App Store, and any fallout could impact multiple Musk-owned businesses.
Despite being called out, Apple has not responded to requests for comment. That didn’t stop OpenAI CEO Sam Altman from jumping into the fray, sending a pointed response of his own:
“Remarkable, given what I’ve heard about how Elon would use X to his benefit and harm competitors,” said Altman.
Tesla and xAI: The Line Blurs
There’s more crossover between Tesla and xAI than one might expect. Musk has previously hinted that Tesla could take a stake in xAI, making the boundary between the two companies increasingly blurry. Both are in fierce competition for top AI talent, vital to driving their tech ambitions further.
Investor Concerns: Apple Lags, Tesla Climbs
While Tesla basks in its stock gains, Apple is having a rougher year—its shares are down 8.7% since the start of 2024, though there’s been a modest 3.4% rise over the past 12 months. Investors are growing apprehensive about Apple’s slow AI innovation, possible new import tariffs, and a string of ongoing antitrust concerns.
- Growing worries about slow AI progress at Apple
- Potential for import tariffs on tech products
- Ongoing and new antitrust investigations
Musk’s legal threats could add yet another antitrust headache for Big Tech. For example, in August 2024, a U.S. judge ruled that Google holds a monopoly in general search services. The fallout? Google’s exclusive search deal with Apple could be banned. (Fun fact: Google paid Apple a whopping $20 billion for that exclusive partnership in 2022.)
So, while Tesla’s trajectory shows no sign of slowing down, the twists and tangles of Big Tech competition—and the warring ambitions of its boldest leaders—are giving Wall Street a front-row seat to the action. Anyone else feel like they need popcorn?
