There are many rumors about a potential Tesla phone, with one even claiming that the device is codenamed “Model Pi.” In an interview with Joe Rogan, Elon Musk denied these rumors and said the company wasn't “making a phone”
Referring to the automotive software that Tesla vehicles run on, Elon Musk says the company is “probably” better positioned than “any other company in the world” to develop a new phone that could rival Android and the iPhone However, the company will only do this if it needs to.
Tesla could offer a smartphone if Apple and Google start doing “really bad things”, such as app censorship or control. All of this indicates that Musk sees no need to launch a new rival in the smartphone space.
Of course, it's not like other big companies haven't tried to introduce a third competitor into the market. Amazon tried it with the Fire Phone in 2014, which used a derivative version of Android. With a dedicated app store and a significant online presence, Amazon's smartphone had the potential to be a great rival to Android and iOS, but it ultimately failed for several reasons.
Another notable example is that of the Windows Phone platform. Although Microsoft made a brave attempt, it failed to convince app developers, which prevented the ecosystem from gaining traction. Musk probably took this into consideration, which is probably another reason why the company isn't banking on a Tesla phone yet.
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