Elon Musk Shuts Down Smartphone Rumors: 'We Are Not Going To Do A Tesla Phone'

Tesla Inc. (NASDAQ:TSLA) and SpaceX CEO Elon Musk on Sunday put an end to the speculation about a potential Tesla smartphone.

What Happened: The rumors of a Tesla phone have been circulating for some time now. However, Musk dismissed these rumors during a livestream that covered a wide range of topics from Starship to Tesla. 

“We are not going to do a Tesla phone,” he announced, according to a post by Tesla investor Sawyer Merritt.

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Why It Matters: The speculation about a Tesla smartphone gained momentum last year when Musk hinted at the possibility of an “alternative phone” following the acquisition of Twitter, now rebranded as X. This was amidst uncertainty about the microblogging platform’s status on mainstream app stores.

On the other hand, last year in August, Nio Inc. the Chinese electric vehicle manufacturer and Tesla rival, cleared a significant regulatory hurdle. The company’s first smartphone, bearing the model number N2301, successfully received an internet access license from China's Ministry of Industry and Information Technology.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.