Wednesday 12 June 2024

Morgan Stanley: Tesla Will Likely Launch Its Own Phone

Morgan Stanley has sent a note to clients affirming its belief that Tesla will launch a phone of its own to compete with Apple and Google.

Tesla CEO Elon Musk has teased the possibility of a Tesla phone in the past, and is no fan of Apple. The executive has been critical of the company many times, most recently saying he would ban Apple devices from his companies’ buildings if Apple continues with its integration of ChatGPT.

Morgan Stanley believes these factors play a role in possibility of a future Tesla phone. The note, seen by Slashdot, is copied in its entirety below:

From our continuing discussions with automotive management teams and industry experts, the car is an extension of the phone. The phone is an extension of the car. The lines between car and phone are truly blurring.

For years, we have been writing about the potential for Tesla to expand into edge compute domains beyond the car, including last October where we described a mobile AI assistant as a ‘heavy key.’ Following Apple’s WWDC, Tesla CEO Elon Musk re-ignited the topic by saying that making such a device is ‘not out of the question.’ As Mr. Musk continues to invest further into his own LLM/genAI efforts, such as ‘Grok,’ the potential strategic and userexperience overlap becomes more obvious.

From an automotive perspective, the topic of supercomputing at both the datacenter level and at the edge are highly relevant given the incremental global unit sold is a car that can perform OTA updates of firmware, has a battery with a stored energy equivalent of approx. 2,000 iPhones, and a liquid cooled inference supercomputer as standard kit. What if your phone could tap into your vehicle’s compute power and battery supply to run AI applications?

Edge compute and AI have brought to light some of the challenges (battery life, thermal, latency, etc.) of marrying today’s smartphones with ever more powerful AI-driven applications. Numerous media reports have discussed OpenAI potentially developing a consumer device specifically designed for AI.

The phone as a (heavy) car key? Any Tesla owner will tell you how they use their smartphone as their primary key to unlock their car as well as running other remote applications while they interact with their vehicles. The ‘action button’ on the iPhone 15 potentially takes this to a different level of convenience.



from WebProNews https://ift.tt/Lvz3CP1

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