Starlink Phone 'Not Out Of The Question,’ Says Elon Musk — But Whatever Happened To The Tesla Phone?

A Tesla phone never made it to the market, but Musk is now talking about a Starlink phone.

• In 2024, during a podcast with comedian Joe Rogan, Musk said that Tesla could build a smartphone but only when needed. 
• Starlink, which is constructed and deployed by SpaceX, is a “Direct to Cell” network and is the largest 4G coverage provider on Earth.
• Reuters reported on Thursday that Musk’s SpaceX was reportedly in talks with the billionaire’s AI company xAI .

As chatter around the SpaceX and xAI merger grows, Elon Musk hinted at the possibility of a Starlink Phone and said that it was “not out of the question” in response to a post by a user on X.

Starlink, built and deployed by SpaceX, is a “Direct to Cell” network and the largest 4G coverage provider on Earth, with more than 12 million people already relying on Starlink to connect their LTE phones in areas where terrestrial service is unavailable.

“It would be a very different device than current phones. Optimized purely for running max performance/watt neural nets,” Musk said on X, formerly known as Twitter.

What Happened To The Tesla Phone?

In 2024, during a podcast with Joe Rogan, Musk said Tesla could build a smartphone but only when needed. "If Apple and Google/Android started doing really bad things, like, I don't know, censorship of apps or... just being like gatekeepers, in a really bad way, then I guess we'd make a phone," Musk told Rogan a couple of years ago.

But the billionaire then said Tesla would not do it unless “they have to or something.”

SpaceX, xAI Merger

Reuters reported on Thursday that Elon Musk’s SpaceX is in talks with his artificial intelligence company, xAI, ahead of a potential initial public offering of the rocket manufacturer later this year. According to the report, two entities have been established in Nevada to facilitate a potential merger, although details on the valuation and timing remain confidential. Separately, Bloomberg News reported that SpaceX is considering a potential merger with electric-vehicle giant Tesla, in addition to xAI.

How Are Stocktwits Users’ Reacting?

Retail sentiment on SpaceX was in the ‘neutral’ territory on Stocktwits, while sentiment on Tesla dipped to ‘extremely bearish’ from ‘bearish’ a week ago.

Shares of Tesla have gained nearly 3% in the last 12 months.

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