Tesla said to be looking into its own Spotify-like music streaming service for cars

Tesla Model 3 in-car

Tesla is reportedly speaking with major music labels about licensing a proprietary music service that would be bundled with its cars.

According to Recodemusic industry sources say that Tesla is interested in offering “multiple tiers of service,” starting with a web radio offering similar to Pandora, the music platform currently only available outside of Canada.

It’s not clear what, exactly, these tiers of service might fully entail. It’s worth noting though, that Tesla already has a deal with Spotify in the UK to offer its music services in Model X and Model S vehicles.

While these reports may seem surprising, Tesla CEO Elon Musk had actually hinted at offering music features earlier in June at a shareholder meeting. As Tech Crunch notes, Musk had said it’s currently “very hard to find good playlists or good matching algorithms” and that the company will have more to share about music sometime later this year.

Should Tesla indeed launch its own service, it would be competing with major music streaming players Spotify and Apple Music. The former hit 140 million monthly active users earlier this month, following an announcement of 50 million paying subscribers in March.

Meanwhile, Apple Music has reached 27 million users.

Image credit: Tesla

Source: Recode