Tesla Stock Jumps as Musk Clashes with Apple over App Store Rules

Business Insider

a day ago

Tesla stock (TSLA) is climbing again, adding to a steady run of gains. The shares moved higher in premarket trading on Tuesday, putting the electric vehicle maker on track for its fifth straight day of increases. This rise is happening even as CEO Elon Musk becomes involved in a new dispute with Apple (AAPL).
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The latest controversy began when Musk accused Apple of blocking fair competition in its App Store. He claimed that the company is limiting the reach of apps from his artificial intelligence business, xAI. 'Apple didn't just put their thumb on the scale, they put their whole body!' Musk wrote on X. The disagreement centers on xAI's apps for X, formerly known as Twitter, and its AI chatbot Grok. While the clash is between xAI and Apple, Tesla investors are paying attention. Musk has said that Tesla might take a stake in xAI, which has created a closer link between the two companies.
Momentum Builds Beyond the Apple Dispute
However, the rise in Tesla's stock is not only about the Apple story. Over the past four trading sessions, the stock has gained almost $31, or about 10%. Several factors appear to be driving the move.
First, the overall stock market has been performing well. The Nasdaq Composite has risen more than 2% in the same period and even reached a new record last week. Tesla often benefits when technology stocks lead the market higher, so this broader rally has provided helpful support.
Second, Tesla's board recently approved a new pay package for Musk. For many investors, this was an important signal that Musk will continue to focus on Tesla's growth. This reassurance matters because Musk is also spending more time on AI-related ventures.
Demand Strengthens ahead of Tax Credit Deadline
In addition, Tesla is experiencing strong demand in the United States. Buyers are hurrying to place orders before changes to battery-sourcing rules in September make some models ineligible for the $7,500 federal tax credit for new electric vehicles. The credit itself remains in place through 2032 under the Inflation Reduction Act, but the eligibility changes have already pushed wait times for certain Tesla models higher. This is a positive sign for the company, especially at a time when electric vehicle sales have slowed for some competitors.
The approaching deadline is also important for Tesla's short-term results. Higher order volumes now could lead to better delivery numbers for the next quarter, which may help support profit margins. Investors understand that in a competitive EV market, keeping sales volume strong is key to maintaining financial health.
TSLA Stock Returns to Pre-Robotaxi Launch Levels
There is also a technical factor supporting the rally. Tesla's share price is moving back toward the levels it reached before the launch of the company's robotaxi service on June 22. Before that event, the stock traded above $340, but it pulled back afterward. As the price approaches those highs again, traders who watch technical charts are showing more interest, adding extra buying pressure.
At the moment, Tesla's shares are still down about 16% for the year. However, they have risen roughly 72% over the past 12 months. For optimistic investors, the recent gains show that sentiment toward the stock is improving again. Strong demand, a supportive market environment, and Musk's high-profile leadership are all playing a role in this turnaround, even as he faces a public battle with one of the world's most powerful technology companies.
Are Tesla Shares a Buy?
Tesla's current Wall Street sentiment is mixed. According to TipRanks, 14 out of 37 analysts rate the stock a 'Buy,' while 15 recommend Hold, and eight say Sell. The average 12-month TSLA price target is $307.23, about 9% below Tesla's latest close of $339.03.