Elon Musk Breaks Silence on Tesla Phone Rumours as SpaceX Plots £13.7 Billion Satellite Plan

Recently, social media has been awash with startling images and technical claims about a ‘Tesla phone’, often labelled the Model Pi. Rendered mockups suggest features like solar charging, native Starlink access, and advanced encryption. These rumours have gained traction despite no credible evidence or official confirmation from Tesla.

For those unfamiliar, Tesla is an American company that designs and manufactures electric vehicles, battery storage systems, and solar energy products. Founded in 2003, it is best known for its range of electric cars, including the Model S, Model 3, Model X, and Model Y. The company also develops energy solutions such as the Powerwall, Powerpack, and Solar Roof. In addition to its automotive and energy businesses, Tesla is involved in AI and self-driving technologies. Its CEO, Elon Musk, is a prominent figure in the global tech industry.

Is a Tesla Phone in the Works?

Musk’s silence snapped during his appearance on The Joe Rogan Experience, where he said: ‘No, we’re not doing a phone.’ He left a small conditional opening, where he said he might reconsider only if Apple or Google barred Tesla apps or Starlink services from their platforms.

To date, no internal job listings, patent filings, or supply chain moves point to a smartphone project at Tesla. The company is not actively hiring for phone development roles, and review of public filings finds no patent activity in that domain. Industry insiders emphasise that Tesla’s primary efforts stay focused on electric vehicles, autonomous systems, energy, and AI.

Is there any truth to the Starlink Rumours?

Beyond rumours of a phone, it looks like SpaceX is making a bold move. On 8 September 2025, SpaceX agreed to acquire wireless spectrum from EchoStar worth roughly £13.7 billion (approximately $17 billion). This transaction included spectrum bands such as AWS‑4 and H‑block, and also covered approximately £1.6 billion (around $2 billion) in debt payments through 2027.

This massive investment positions SpaceX to develop a Starlink ‘direct‑to‑cell’ service. The idea is to allow mobile phones to connect directly to Starlink satellites without relying on ground towers. SpaceX President Gwynne Shotwell confirmed the plan at a conference in Paris, stating the company is working with chip manufacturers to embed Starlink-compatible components directly into future smartphones.

Wholesale Satellite Capacity

Rumour has it that the goal is not to release a Tesla-branded mobile device, but to turn everyday phones into satellite-connected tools. By focusing on microchips and spectrum ownership, SpaceX plans to support mobile carriers rather than compete with them directly. The company aims to offer wholesale satellite capacity to operators, potentially eliminating coverage gaps worldwide.

More than 600 Starlink satellites are already in orbit and configured for this direct-to-device capability. These satellites orbit at lower altitudes to reduce latency and improve service quality. SpaceX plans to begin mobile testing as early as late 2026, with deployment expanding in the years that follow.

Advertising Revenue to Questionable Websites

In contrast, the so-called Tesla phone remains a product of internet speculation. Despite repeated claims online, Tesla has never announced, developed, or filed for a smartphone product. Viral posts, including edited images of Elon Musk holding a phone, continue to spread on platforms such as Facebook and YouTube, often linked to misleading blog articles.

These posts typically serve to generate advertising revenue or drive traffic to questionable websites. Several fact-checking organisations have dismissed the claims, noting that no major news outlets or official Tesla communications have ever supported them. Nonetheless, the myth of the Tesla phone persists, powered more by audience imagination than actual innovation.

Originally published on IBTimes UK