Will Tesla Do a Phone? Yes, Says Morgan Stanley

Morgan Stanley, in a note -- seen by Slashdot -- sent to its clients on Wednesday: 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.

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