Tesla CEO ends smartphone launch rumors

Tesla CEO, Elon Musk has confirmed that his electric vehicle (EV) company is not launching a smartphone marking an end to the rumors surrounding this unreleased product.

Tesla is not launching a smartphone said Musk during a live stream test on social media site X which lasted for over five hours.

Early speculations about this phone started three years ago via online media outlets but there were no official announcements. The story picked up pace when Musk took over Twitter (now X) and it was rumored to be removed from the Play Store and App Store.

While commenting to an X user in 2022, the Tesla Chief wrote he could make a smartphone if any of these companies delisted X. However, he didn’t mention Tesla to come up with its production. Eventually, X remained listed on both platforms and no new insights were available about this phone.

Amid rumors, Musk now investing more time in improving EV sales. The market is under great pressure due to slowing demand and high prices.

Big automakers including GM, Ford, and others are scaling down on plans to launch new EVs. The EV maker also projected a slow 2024 but may exceed last year’s 2.8 million vehicles.

A previous report shows that Tesla is advancing in Robotics and AI. It is finding a new source of income from these two categories by the end of this decade. The company has priority-based development of a new self-driving system which will be used in the upcoming Robotaxi.

Like a car, smartphone production includes a supply chain, hardware design, and a software ecosystem. It took years for Tesla to achieve expertise in building electric vehicles.

It also applies to companies such as Apple and Samsung, which have been developing smartphones for years. Therefore, calling a cancellation for a smartphone could be a vice decision from the Tesla CEO.