Apple (AAPL) stock surged in late afternoon trading following news that the FBI had issued subpoenas to Apple’s local law enforcement officers, demanding records about the company’s use of a new device-sniffing device in an investigation into the San Bernardino shooting.
Apple shares rose more than 3 percent to $619.99 on the Nasdaq, up 1.3 percent from the day’s close.
Tesla stock rose 2.2 percent to a record $7,300.
Tesla shares surged 7.2% to $19,750 after the Palo Alto, California-based electric-car maker said it will release a new model, dubbed the Model 3, that will be more powerful and less expensive than its current model, the Model S sedan.
The company said the new Model 3 would be available by the end of 2017.
Tesla and Apple are embroiled in a long-running dispute over a patent Apple and the FBI are suing over.
The government says Apple’s design patent, #12,894,854, has “the potential to render the design of all other modern automobile and motorcycle passenger-side airbags and crash barriers non-inventory.”
Apple says it invented the device, which uses infrared and thermal sensors to detect airbags deployed on vehicles, and Apple says the patent was invalid and infringed on by another company.
The two companies settled their patent lawsuit last year.
Apple’s latest patent lawsuit comes as the Justice Department is investigating whether the company used a tool from a rival company to unlock the iPhone used by Syed Rizwan Farook, one of the shooters in the December 2015 attack on a San Bernardino County facility.
The case is being handled by the Justice and Treasury Departments’ Antitrust Division.