Musk Again Denies Tesla Will Make a Phone, Unless Apple and Google "Do Something Evil"

Musk Again Denies Tesla Will Make a Phone, Unless Apple and Google "Do Something Evil"On November 5th, local time, Tesla CEO Elon Musk responded to rumors about whether Tesla would manufacture a phone on Joe Rogan's popular podcast. He stated unequivocally that Tesla has no plans to build a phone at this time, unless Apple and Google begin to do something "very bad

Musk Again Denies Tesla Will Make a Phone, Unless Apple and Google "Do Something Evil"

On November 5th, local time, Tesla CEO Elon Musk responded to rumors about whether Tesla would manufacture a phone on Joe Rogan's popular podcast. He stated unequivocally that Tesla has no plans to build a phone at this time, unless Apple and Google begin to do something "very bad."

Musk explained, "Making a phone isn't something we want to do, unless Apple and Google start doing some really bad things." He believes Tesla is entirely capable of developing a new phone, as their operating system is based on Linux and they have built significant software on top of it, giving Tesla an advantage over others. Nevertheless, Musk emphasized that this is not the direction Tesla wants to take, unless absolutely necessary.

When asked under what circumstances Tesla would be compelled to make a phone, Musk stated plainly, "I think if Apple and Google started doing some really bad things, like censoring apps, or doing content moderation in a terrible way, then we might consider making a phone."

It is worth noting that in June of this year, electric vehicle analyst Sawyer Merritt posted a report by Morgan Stanley analyst Adam Jonas on social media. The report suggested that Tesla could make a "compelling" phone that would leverage its battery, storage, and other device capabilities to run powerful AI applications, effectively acting as a "heavy car key." Musk commented on the tweet at the time, saying, "We could (build a phone), but hopefully it wouldn't be necessary. Tesla is one of the few companies that has its own tech stack (not iOS, Android, or a fork of Android)."

Musk's statements have once again sparked speculation about whether Tesla will enter the phone industry. While he clearly stated there are no current plans to make a phone, he also left room for maneuver, suggesting that Tesla might consider entering the phone market if Apple and Google encounter problems with their software ecosystems.

Tesla possesses strong technical capabilities in both software and hardware. Its operating system is based on Linux, and it has developed extensive software on top of this system, laying the groundwork for Tesla to manufacture a phone. Additionally, Tesla's advantages in areas like batteries and storage could provide powerful support for a phone.

However, Tesla's entry into the phone market also faces significant challenges. First, the phone market is fiercely competitive, with Apple and Google holding the majority of market share. Second, Tesla would need to invest heavily in capital and resources to develop phone hardware and software, as well as building supply chains and sales channels.

Currently, Tesla's focus remains on its automotive business. Whether building a phone is just a joke by Musk or a future strategic direction remains unclear. However, his statements indicate that Tesla may consider entering the phone market in the future, particularly if Apple and Google encounter issues with their software ecosystems.

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