Elon Musk’s Bold Plan: Tesla Might Enter the Smartphone Market

Tesla CEO Elon Musk has hinted that Tesla could potentially launch its own smartphone if Apple and Google misuse their control over app distribution. Musk made this statement during a recent appearance on “The Joe Rogan Experience,” noting that Tesla won’t produce a smartphone unless compelled by circumstances. If necessary, Musk envisions a Tesla phone operating independently of Android and iOS by leveraging Tesla’s existing software foundation.

Why Would Tesla Enter the Smartphone Market?

Musk expressed concerns about Apple and Google’s dominant positions as “gatekeepers” in the smartphone industry. Regulatory bodies, particularly the European Union, have also scrutinized these tech giants for potentially abusive practices. Musk suggested that Tesla would only consider entering the smartphone space if app censorship or platform monopolization by Apple or Google becomes excessive.

Could Tesla Develop a Unique Operating System?

The current Tesla infotainment system, which offers access to various apps and games, serves as a hint that Tesla might have the foundation for a smartphone OS. Beyond software, Tesla could leverage Starlink, a satellite-based internet service operated by Musk’s SpaceX, to ensure unique connectivity options on Tesla phones. SpaceX is already testing satellite-to-mobile messaging for emergency notifications and SMS support, which could offer Tesla phones a distinctive connectivity feature. However, building an OS outside of the Android and iOS ecosystems poses substantial hurdles.

Challenges in Launching a Tesla Smartphone

History shows that breaking into the smartphone market is challenging. Microsoft struggled with its Windows Phone due to limited app support and Google’s refusal to offer its services on the platform. Similarly, Amazon’s Fire Phone failed despite Amazon’s retail clout and custom Fire OS, which remains relegated to tablets and streaming devices.

Moreover, Apple’s iMessage loyalty among U.S. users is a significant challenge for any potential Tesla phone. Apple’s messaging exclusivity has kept millions in its ecosystem, a loyalty barrier that could hinder a Tesla phone’s adoption. Given Musk’s controversial management of Twitter (now X), with a drop in its market value, some question whether Tesla’s potential phone would succeed under his leadership.