A report from Morgan Stanley on Wednesday suggests that Tesla might venture into the smartphone market. The research highlights the increasing convergence between cars and phones, noting that the lines between the two are becoming increasingly blurred.
Morgan Stanley analysts have been discussing the potential for Tesla to expand into edge computing domains beyond the automotive sector. This includes the development of a mobile AI assistant, a concept they previously referred to as a “heavy key.”
Following Apple’s WWDC, Tesla CEO Elon Musk reignited this discussion, indicating that such a device is “not out of the question.”
Musk’s investments in AI, particularly through projects like “Grok,” underscore the potential for strategic and user-experience overlap between Tesla’s automotive technology and possible consumer devices.
From an automotive perspective, the report points to the relevance of supercomputing at both the datacenter and edge levels. With each Tesla vehicle essentially serving as a mobile supercomputer, capable of performing over-the-air updates and boasting a significant battery capacity, the idea of integrating a smartphone with a vehicle’s compute power and battery supply becomes more feasible.
The report also discusses the challenges of integrating AI-driven applications with today’s smartphones, such as battery life, thermal management, and latency. Media reports have speculated about companies like OpenAI developing consumer devices specifically for AI, adding weight to the possibility of Tesla’s entry into the market.
Tesla vehicles already function with smartphones acting as primary keys for unlocking and controlling various features. The introduction of the “action button” on the iPhone 15, which allows users to interact more seamlessly with their vehicles, exemplifies this growing integration.
In response to the speculation, Elon Musk replied to @SawyerMerritt, who shared the report, to say, “We could, but hopefully it isn’t needed. Tesla is one of the few companies that has its own tech stack (not iOS, Android, or forked Android).”
Back in 2020, Musk ruled out smartphones and smart watches as old technology. He said Neuralinks are the future.
Do you think Tesla will create its own smartphone? I think the company should focus on its cars. That being said, if a Tesla phone was released, we’d be the first in line.
