Elon Musk during a news conference with President Donald Trump on May 30, 2025, inside the Oval Office (Tom Brenner/Getty Images)

Tesla drops as Musk heads “exactly the opposite direction” from what investors want

Wedbush analyst Dan Ives says Musk’s America Party will distract the Tesla CEO and put pressure on the stock price, which is already sinking in premarket trading.

Rani Molla

7/7/25 4:51AM

Wedbush Securities analyst Dan Ives is not celebrating Elon Musk’s “America Party,” saying the move is a distraction from his job as CEO of Tesla, having recently returned to his work at the EV maker after his stint at DOGE.

“Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story,” Ives wrote.

Musk’s escalation of his feud with President Trump could create more government roadblocks for the EV company as it tries to transition into an autonomous vehicle outfit, hurting the stock, the Tesla bull said.

“Tesla shares will likely be under some pressure tomorrow as investors worry about the implications if Trump and Republican party view Musk more as a foe than a friend now. With the autonomous future ahead and the AI Revolution in full force Musk/Tesla do not need to keep poking the bear as Trump can create more hurdles for Musk/Tesla/SpaceX over the coming years if this political battle gets nastier heading into mid-terms in 2026. Tesla needs Musk as CEO and its biggest asset and not heading down the political route yet again... while at the same time getting on Trump’s bad side.”

Trump responded Sunday to Musk’s proposed political group by saying third parties have “never succeeded” and calling Musk a “TRAIN WRECK.” He also criticized Musk’s choice of Jared Isaacman for NASA leadership as “inappropriate,” given their friendship, Musk’s conflicting interests as head of SpaceX, and Isaacman’s political donations to Democrats.

The stock was down as much as 7% in early trading on Monday. Ives maintained his firm’s “outperform” rating and $500 price target nonetheless.

Jon Keegan6h

Anthropic projections for 2028: Up to $70 billion in revenue, could be profitable by 2027

Anthropic’s Claude API business is doing so well with enterprise customers, the company is upping its revenue forecasts significantly. According to a report from The Information, the company’s robust corporate sales have caused it to revise its most optimistic forecast up to $70 billion in sales by 2028.

Anthropic estimates its API business will be double that of OpenAI’s API sales. OpenAI is currently burning through much more money per month than Anthropic, and reportedly expects to spend as much as $115 billion through 2029, while Anthropic is forecasting that it could be cash positive by 2027, per the report.

Anthropic Projects $70 Billion in Revenue, $17 Billion in Cash Flow in 2028

Rani Molla6h

Amazon, which is developing AI shopping agents, doesn’t want Perplexity’s AI shopping agents on its site

Amazon has sent a cease and desist letter to Perplexity AI, demanding that it stop letting its AI browser agent, Comet, make online purchases for users, Bloomberg reports.

Amazon, which is developing its own AI shopping agents and is having “conversations” with builders of third-party agents, accused the AI startup of “committing computer fraud by failing to disclose when its AI agent is shopping on a user’s behalf, in violation of Amazon’s terms of service.”

Perplexity, in response, said Amazon is attempting to “eliminate user rights” in order to sell more ads.

Amazon Demands Perplexity Stop AI Agent From Making Purchases

Perplexity, in response, said Amazon is attempting to “eliminate user rights” in order to sell more ads.

Jon Keegan7h

Apple to challenge Google Chromebooks with low-cost Mac laptop, Bloomberg reports

Apple is designing a new sub-$1,000 Mac laptop aimed at the education market, Bloomberg reports.

Google’s low-cost Chromebooks currently dominate the K-12 education market, and Apple’s reentry into the education market that it once owned could disrupt the sector’s status quo.

According to the report, Apple plans on using the custom mobile chips it currently uses in iPhones to power the more affordable devices.

Apple’s recent earnings demonstrated that iPhone sales have been steady, and the tech giant is looking to find new areas of growth, like services. A low-cost Mac could be popular with consumers, in addition to education buyers.

Apple Prepares to Enter Low-Cost Laptop Market for First Time

According to the report, Apple plans on using the custom mobile chips it currently uses in iPhones to power the more affordable devices.

Jon Keegan7h

Getty Images suffers partial defeat in UK lawsuit against Stability AI

Stability AI, the creator of image generation tool Stable Diffusion, largely defended itself from a copyright violation lawsuit filed by Getty Images, which alleged the company illegally trained its AI models on Getty’s image library.

Lacking strong enough evidence, Getty dropped the part of the case alleging illegal training mid-trial, according to Reuters reporting.

Responding to the decision, Getty said in a press release:

“Today’s ruling confirms that Stable Diffusion’s inclusion of Getty Images’ trademarks in AI‑generated outputs infringed those trademarks. ... The ruling delivered another key finding; that, wherever the training and development did take place, Getty Images’ copyright‑protected works were used to train Stable Diffusion.”

Stability AI still faces a lawsuit from Getty in US courts, which remains ongoing.

A number of high-profile copyright cases are still working their way through the courts, as copyright holders seek to win strong protections for their works that were used to train AI models from a number of Big Tech companies.

Getty Images largely loses landmark UK lawsuit over AI image generator