QCOM Stock Slips Toward Fourth Straight Loss After Elon Musk Dismisses Reports Of SpaceX AI Phone Using Qualcomm Chips

• Musk took to his social media platform X to shoot down the report, using the phrase “utterly false” to counter the publication’s claims, without providing further details. 
• The Wall Street Journal reported that SpaceX had pitched a mobile device running on a custom operating system from Musk’s xAI division.
• The report also stated the handset would use Qualcomm’s Snapdragon processor. 

Tech billionaire Elon Musk on Wednesday publicly rejected a Wall Street Journal report claiming that SpaceX recently demonstrated a prototype for a new, handset-like artificial intelligence device to investors, labeling the publication's exclusive story as "utterly false." 

The device, according to WSJ, would be using Qualcomm’s (QCOM) snapdragon processor. QCOM stock dropped and was on track to end its fourth session lower after Elon Musk squashed the report on social media platform X, formerly Twitter, calling it false.

QCOM stock reversed early gained to fall 0.5%, while SpaceX (SPCX) shares fell 7.3% on Wednesday at the time of writing. 

What The Report Said On XAI's Smartphone Plans 

The private aerospace giant had actively pitched a concept for a handset-like AI gadget during private investor meetings ahead of a future initial public offering, the WSJ report stated, citing people familiar with the matter. The hardware was described as a consumer technology play, featuring a frame sleeker and thinner than an Apple iPhone. 

According to the Journal, the conceptual device was designed to run on a proprietary operating system built to deeply integrate cutting-edge AI software from xAI, the artificial intelligence division that SpaceX absorbed earlier this year. The publication also said that the tech would be powered under the hood by Qualcomm Snapdragon chipsets, a detail that initially triggered a brief rally in Qualcomm shares before the broader markets parsed Musk’s rebuttal. 

However, sources cited in the original Wall Street Journal article noted that SpaceX had explicitly communicated to investors that the venture remained in its infancy. The project was described as highly experimental, with an evolving design and no certainty that the physical gadget would ever be mass-manufactured or reach the commercial market.

QCOM, SPCX Stock: Retail View 

Retail sentiment on Stocktwits for QCOM was ‘extremely bullish’ with ‘high’ message volumes and was ‘bearish’ for SPCX with ‘low’ message volumes. 

One user highlighted that if the news was true, it would place SpaceX into a broader ecosystem. 

QCOM stock rose 5.3% and SPCX has gained 5% year-to-date. 

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