As Elon Musk Lashes Out at Apple, How Should You Play TSLA and AAPL Stock?

Investors are glued to Tesla (TSLA) and Apple (AAPL) charts this morning after billionaire Elon Musk announced plans of legal action against the iPhone maker.

In his recent social media post, Musk said the company is in breach of antitrust laws since it’s “behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in App Store.”

Neither Apple nor Tesla stock has been particularly exciting for investors this year. Shares of the former are down more than 7% versus their year-to-date high at writing while the latter is down over 20%.

Musk’s legal action would be a major headwind for Apple shares as it could intensify regulatory scrutiny into the giant’s App Store practices.

Prolonged litigation and possible reputational damage especially given AAPL’s existing EU fines and U.S. investigations could meaningfully dampen the investor sentiment moving forward.

Plus, the alleged favoritism toward OpenAI may also spark backlash from developers, potentially undermining Apple’s positioning in the artificial intelligence space and its ecosystem credibility.

Musk’s threat is concerning for AAPL investors given that Wall Street’s view, even before his X post, wasn’t particularly bullish.

While the consensus rating on Apple stock remains at “Moderate Buy,” the mean target of roughly $236 indicates less than 3% upside from here.

A lawsuit against Apple will likely prove a headwind for Tesla stock as well, because it signals yet another distraction from the company’s core business, reinforcing concerns about Musk’s divided focus.

With slowing electric vehicle (EV) demand due to rising competition already pressuring TSLA, this legal crusade could further erode confidence.

In a recent CNBC interview, Wedbush senior analyst Dan Ives also called it a “massive headache,” warning Musk’s fixation on xAI and AAPL risks sidelining Tesla’s strategic priorities.