Elon Musk’s companies are already creating futuristic technology, from Neuralink to self-driving cars. Rumors of a Tesla phone have also been circulating, and the billionaire himself added fuel to the fire. We find out whether these rumors hold any truth.
Musk leads a long list of companies, with Tesla, SpaceX, Neuralink, and X being some of the major ventures from the entrepreneur. But is the tech titan about to add “smartphone” to his resume with a mysterious “Tesla phone”?
Rumors of a Tesla phone, sometimes called the “Tesla Pi phone,” have been buzzing since 2021, and Elon Musk himself fueled the fire by dropping some mysterious hints on Twitter about potentially launching a phone.
Following a critical tweet about major tech companies, Elon Musk hinted at creating an alternative to iPhones and Android phones. However, it’s only fair to keep the expectations in check.
Tesla Phone rumors
Apart from the two isolated instances mentioned above, there is no evidence that a Tesla Phone exists. No elements like design, OS, or anything else have been leaked.
There are no leaks hinting at the possible specifications, price, or launch date of the Tesla phone. So, there is no guarantee that Elon is indeed planning to disrupt the smartphone market with a device of his own.
As soon as we hear more, we’ll be sure to keep tabs on Musk and any smartphone-based aspirations. But, don’t hold your breath for anything concrete any time soon.
Reasons why the Tesla Phone might never launch
The smartphone market is highly saturated, with competition among so many brands vying for market share. It is challenging for a new entrant to introduce a new phone and make a name for themselves. We discuss some reasons why we might never see a Tesla Phone.
Smartphone market is highly competitive
While you have two major brands in the USA – Apple and Samsung – enjoying the lion’s share of users. Other markets like Asia and Africa are a different story.
Apple, unlike the US, doesn’t enjoy a majority, barring a few markets. The Android side of the world is highly fragmented, with dozens of smartphone makers looking to outdo each other.
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Making space for a new brand in such a diverse market requires enormous investment, yet margins could be razor-thin. For a brand like Tesla that has heavily invested in different technology-heavy domains, it will be a massive challenge to bring a product to market from concept to retail shelves.
Android & iOS duopoly is strong
When it comes to operating systems, there is absolutely no competition to Google and Apple. Both brands control the market and have a massive ecosystem of applications.
It is next to impossible to challenge their authority as of now. Huawei wanted to counter this. However, after tasting success briefly, the Chinese brand is now fighting for its life.
On the other hand, Tesla is already facing production delays and has multiple products in the works. This makes adding a smartphone to its product line difficult, at least under current market conditions.
There’s no obvious demand for Tesla Phone
Last but not least, while smartphones are evolving and brands are experimenting with new form factors, there is no obvious demand for a Tesla phone. At best it would have a minimal use case and a limited user base which makes it an impractical investment.
A Tesla phone could potentially leverage other Musk-owned brands
A Tesla phone could serve as a hub for various brands that Elon Musk owns. The fact that he wants to make Twitter a super app called “X,” a Tesla phone could help drive faster adoption and higher engagement. The platform is already reported to support peer-to-peer payments and is also available as a TV app.
A potential phone could work as a remote key for Tesla Cars and allow users to control Powerwall and Solar directly from the phone. It could also help users make and receive payments using the preloaded X app, manage their Starlink subscription, and even Tesla Bot and Neuralink when available.
Though all of the above can be done using individual apps, a Tesla-branded phone would mean the company would not be governed by Apple and Google’s Machiavellian store policies.
Do not forget that Elon Musk has launched a flame thrower, really short shorts, Tesla Tequila, a Surfboard, a kid’s Tesla car, and a Space X-branded onesie while working on all those high-tech brands. Of course, these are fun projects, and making a phone is a serious business. So really, a phone isn’t too much of a stretch.
