Tesla is apparently in talks with music labels to create a Tesla music streaming service, much to the surprise of everyone. According to Recode, the EV maker is looking to launch a free Pandora-like service.

Tesla music streaming service, Elon Musk
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Tesla music streaming service is coming

Although not many can figure out what the EV maker is actually doing, Elon Musk dropped a hint about working on music products during a recent shareholder meeting in early June, notes TechCrunch. At the time, Musk said it was “very hard to find good playlists or good matching algorithms” for music that someone would want to hear while driving. He also said that the company would come up with something later this year. According to Forbes, a company spokesperson stated that the company aims to make customers happier.

“We believe it’s important to have an exceptional in-car experience so our customers can listen to the music they want from whatever source they choose,” the spokesperson said. “Our goal is to simply achieve maximum happiness for our customers.”

Perhaps Tesla is looking for licensing to be applied to the music service format. A Tesla music streaming service might be sold with the company’s cars. Now that the Palo Alto-based company looks determined to create its own music streaming service, it could launch pretty soon.

What other option does Tesla have?

Tesla is a company that believes in the idea of controlling everything, but still, the idea of a Tesla streaming service does not deliver a clear picture of why the company would venture into something very different from its core services. Many will agree that it is easier for the EV firm to create something more like the Android Auto platform, which is a dashboard ecosystem that supports unaffiliated apps in Android’s format templates, notes Inverse.

Drivers can also get music through streaming services such as Spotify and third-party apps. With such an approach, Tesla would be able to save on energy and resources while also offering a personalized driver experience.

Even if the company is looking to sell exclusive music to its car owners via a Tesla music streaming service, there are established labels or streaming services that would be more than willing to do it on the company’s behalf. But Tesla likes to have control over its customers and would not want to hand over even a slice of the pie to streaming companies. At present, Apple and Spotify have a user base of at least 27 million and 50 million paying subscribers, respectively.

Exploring production in China

Tesla is also exploring setting up production in Shanghai. In a statement on Thursday, Tesla said it is looking to set up more overseas factories to make affordable cars. China is an important market, but it charges steep tariffs for imported cars. Hence, it was important for the company to have local production.

“Tesla is working with the Shanghai Municipal Government to explore the possibility of establishing a manufacturing facility in the region to serve the Chinese market,” a company spokesperson said.

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