TLDR
- Tesla stock rose 0.3% in premarket trading Tuesday, continuing a five-day winning streak that has added 10% to share value
- Elon Musk threatened legal action against Apple, claiming the tech giant illegally stifles competition in its App Store regarding xAI apps
- Tesla shares have climbed nearly $31 over four consecutive trading days, though the stock remains down 16% year-to-date
- Investor “Hunting Alpha” maintains a bearish outlook, citing declining EV sales and unrealistic robotaxi timeline expectations
- Wall Street analysts hold mixed views with a consensus Hold rating and average price target of $307.23, implying 9% downside
Tesla stock extended its winning streak to five consecutive days Tuesday morning, rising 0.3% to $340 in premarket trading. The electric vehicle maker has gained nearly $31 per share over the past four trading sessions.
The latest surge comes as CEO Elon Musk escalated tensions with Apple over App Store policies. Musk threatened legal action Monday, claiming Apple illegally suppresses competition for his AI company xAI’s applications.
“Apple didn’t just put their thumb on the scale, they put their whole body!” Musk posted on social media. The dispute centers on xAI’s X and Grok apps in Apple’s App Store.
Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation.
xAI will take immediate legal action.
— Elon Musk (@elonmusk) August 12, 2025
While the conflict involves xAI rather than Tesla directly, investors are watching closely. Musk has suggested Tesla might invest in xAI, blurring the lines between the companies.
Both Tesla and xAI compete for top artificial intelligence talent. This connection makes xAI developments relevant to Tesla shareholders.
The current rally has pushed Tesla shares up 10% over four trading days. Multiple factors appear to be driving the momentum beyond the Apple controversy.
Broader market strength has helped lift Tesla stock. The Nasdaq Composite gained over 2% during the same period, hitting record highs Friday.
Tesla’s board recently approved a new compensation package for Musk. This move addressed investor concerns about where the CEO would focus his attention going forward.
Consumer Demand Factors
Wait times for Tesla vehicles in the U.S. are getting longer. Buyers are rushing to purchase before federal EV tax credits expire in September.
The $7,500 tax credit has been a key incentive for electric vehicle purchases. CFO Vaibhav Taneja recently urged customers to “place your order now.”
Tesla stock has also recovered momentum lost after the company’s June 22 robotaxi event. Shares had traded above $340 before that launch.
Getting back near those levels has attracted technical traders to the stock. The psychological importance of key price levels often influences trading patterns.
Despite recent gains, Tesla remains down 16% year-to-date. However, the stock has climbed 72% over the past 12 months.
Analyst Skepticism Persists
Not everyone shares the current optimism about Tesla’s prospects. Investor “Hunting Alpha” maintains a bearish stance on the stock.
“I continue to be bearish on the stock due to mounting challenges in its current business,” the investor stated. Hunting Alpha cites declining EV sales and unrealistic timeline expectations.
The investor questions Musk’s claim that robotaxi service will reach half the U.S. population by year-end. Tesla currently operates in just two major regions covering 9 million people.
Expanding from 9 million to 174 million people in five months seems unrealistic, according to Hunting Alpha. The total U.S. population stands at roughly 347 million.
Expiring EV tax credits present another challenge for Tesla sales. While there may be a temporary boost as consumers rush to buy before September, demand could drop sharply afterward.
Wall Street analysts remain divided on Tesla’s prospects. The stock carries a consensus Hold rating based on 14 Buy recommendations, 15 Holds, and 8 Sells.
The average 12-month price target sits at $307.23, suggesting potential downside of approximately 9% from current levels. This mixed outlook reflects uncertainty about Tesla’s near-term performance.
Tesla shares closed Monday at approximately $337 before Tuesday’s premarket gains to $340.
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