Tesla may be working on its own Apple-like app store that would enable owners of its electric vehicles to download and install apps, much like on an Apple or Android smartphone.
The question of whether Tesla is working on an app store surfaced after the latest version 11 update of Tesla’s in-car interface in December, when Tesla introduced a customisable icon bar at the bottom of the touchscreen.
This led some to speculate that Tesla boss Elon Musk would announce the app initiative at the company’s latest earnings call in late January, but this did not eventuate.
Now, the view that Tesla could already be developing an app store has been given more legs, after Sawyer Merritt, a Tesla investor considered to be “in the know”, retweeted a video of late Apple CEO Steve Jobs introducing the App Store on Twitter, saying “Rumor has it something similar is coming soon to something with four wheels that starts with a T.”
Rumor has it something similar is coming soon to something with four wheels that starts with a T 👀 https://t.co/qBGPzZpbdE
— Sawyer Merritt (@SawyerMerritt) February 5, 2022
This was quickly retweeted by Teslascope, the Twitter account of a Tesla trip tracking app by the same name.
“The rumor is out! Tesla has been working on their own “App Store” since around May 2021 and will launch before deliveries of the Cybertruck. This is what we expected to be shared during the earnings call, although@elonmusk did share this would be the year of “software”,” it posted.
Teslascope went on to clarify: “Given this not being mentioned during the earnings call, it is our belief that the intended launch period may have been extended, although work has been in progress since the inception of V11 UI with the refreshed Model S/X.”
A little teaser by @SawyerMerritt.
To clarify: Given this not being mentioned during the earnings call, it is our belief that the intended launch period may have been extended, although work has been in progress since the inception of V11 UI with the refreshed Model S/X. https://t.co/weWhYPVDPY
— Teslascope (@teslascope) February 5, 2022
We must note that Musk has not specifically said 2022 will be the “year of software” anywhere that we have been able to track down.
What he HAS said is that, “Tesla is as much a software company as it is a hardware company, both in car and in factory. This is not widely understood.”
Tesla is as much a software company as it is a hardware company, both in car and in factory. This is not widely understood.
— Elon Musk (@elonmusk) February 1, 2022
The reference to the “year of software” likely refers to comments made by Musk in the Tesla Q4 2021 earnings call that its full self-driving (FSD) software would be the “biggest increase in asset value of any asset class in history.”
This was echoed by CFO Zachary Kirkhorn who said: “With the rapid development of FSD, software-based profits will ultimately become a strong addition to the profits generated by selling hardware,” and that, “ the software portion of the business, I think, is the one to really pay attention to.”
If Tesla were to introduce an app store it could add another interesting facet to the pioneering electric brand, which has spearheaded the concept of “software on wheels” with its range of electric cars.
It’s also been argued that by deploying an app store, Tesla would be able to create another revenue stream to add to products like self-driving subscriptions.
It’s not like Tesla needs to introduce apps to compete with the likes of Volvo and Polestar, which have integrated Android Automotive into their EVs making it possible to access vehicle-specific apps via Google Play Store, but having long ago ruled out the integration of Car Play and Android Auto (both phone mirroring systems not to be confused with Android Automotive) into its electric cars, Tesla may have long been planning its own app store venture.
While one user pointed out that the revenue generated from introducing apps might not generate a lot of revenue per car, there’s more to having a proprietary app store than just raking in app subscriptions.
After all, people don’t replace their cars at the same rate that they replace their smartphones, and are not owned by every teenager and child in the playground either.
Cool! But just consider that Teslas deployed ”hardware in use” is 1/1000 of that of Apple.. that is a very limiting factor for economics. At a generous $100 ARPU per car and lets say 1.5m cars x 20% rev share you get 30m gross profit.. just saying.
— HoneyBadger (@RealPontane) February 5, 2022
But they are a much higher order product, generating thousands more in revenue per item than a phone.
The keyword is “ecosystem”. It is the same concept that keeps users tied to iPhones or Android-based phones year after year. Once a driver has their systems set up on a particular operating system, they are much more reticent to change brands – something that has the potential to further cement Tesla as that leading carmaker on the planet for years to come.
That’s not even with the deployment of full self-driving taken into account, which could have the effect of reducing the number of cars owned per capita (a good thing) but could also further place Tesla in front – when and if it finally deploys it as a fully working autonomous driving system.
Which reminds us, where is the Apple EV?
Keyword: Tesla said to be developing app store to rival Apple and Android