Is the Tesla Phone real: Rumors, speculation & more

Mar 12, 2023

An AI-generated image of a smartphone in the background with Tesla logo at the front

Is Tesla making a phone? While rumors around the potential device are whirling around, we dig deep to tell you if it even exists, or if it's just a pipe dream.

At this point everything you hear about the Tesla Phone, or the Tesla Pi Phone, is likely only speculation. Tweets from billionaire mogul Elon Musk gave birth to these fervent rumors.

He has fleetingly mentioned that he might introduce a phone in the last few years. The first was about a feature request for the Tesla car app where Musk, in his usual fashion, responded and mentioned that "if there is no other choice, I will make an alternative phone".

I certainly hope it does not come to that, but, yes, if there is no other choice, I will make an alternative phone

The second instance, as seen above, was the one that fueled all the rumors. Musk, sounding irritated with Apple and Google's draconian app store policies, mentioned that if required, he might introduce an alternate phone to counter big brands.

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.

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.

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.

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.

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.

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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 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.

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.

Also, if anyone can counter Apple and Google's duopoly, it's Elon Musk. He not only has the means, but the right talent in the right places to make a new smartphone OS happen. This would give people a much-needed alternative ecosystem to Apple and Android.

Do not forget, 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.

Building a new smartphone brand and carving a niche is difficult in current market conditions. But, it is not impossible if you have a vision and a product that stands apart from the crowd. Carl Pei and his young tech brand Nothing are the perfect example of this.

Until then, we’ll keep our ears to the ground if we hear anything new about a potential phone from Tesla.

Also, make sure to check out our other guides:

Is Tesla making a phone? While rumors around the potential device are whirling around, we dig deep to tell you if it even exists, or if it's just a pipe dream. Also, make sure to check out our other guides:

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