Elon Musk talks about a Tesla phone but can he make one?

Elon Musk has rekindled the rumours about a Tesla smartphone. During an interaction with comedian Joe Rogan on the Joe Rogan Experience podcast, Musk hinted that Tesla could build a smartphone but only when necessary. He stressed if Apple and Google become more prominent gatekeepers, he may consider launching the Tesla phone.

"If Apple and Google/Android started doing really bad things, like, I don't know, censorship of apps or... just being like gatekeepers, in a really bad way, then I guess we'd make a phone (sic)," Musk told Rogan.

Musk could be referring to rulings from different regulators, including the most impactful European Union, that Apple and Google were gatekeepers in the smartphone space, changing how users access services. The EU has slapped both companies with hefty fines over their malpractices, which allegedly harm small companies and developers and restrict customers' choices.

However, his company is currently not interested in making a phone. “But it's not something we wanna do unless we have to or something,” he added.

But a bigger question: Is Elon Musk's Tesla capable of making a smartphone?

Musk's statement that Tesla can make a phone if necessary confirms that the company has what it needs to build a phone that can readily compete with Apple's iPhone and Android-powered smartphones. He is confident because the existing infotainment system on Tesla vehicles provides access to a host of apps and games. It would take a few tweaks for the company to build a mobile operating system that would not be based on Android or iOS. Tesla can easily procure hardware, including chips, from existing partners, while Tesla Power could provide the relevant batteries for the smartphone.

He could even go as far as launching its own cellular service, leveraging SpaceX's Starlink satellite service. The satcom company is already talking to T-Mobile for a direct-to-cell service for messaging and emergency alerts on smartphones -- akin to Apple's Emergency SOS via satellite service available on iPhones. Musk, however, would be better placed than  Apple or other mobile phone brands in the satellite-based communication service sector since his space company owns several satellites.

While Musk may have the right ingredients to build a fully functional smartphone that can easily compete with the iPhone or Pixel, it is easier said than done. A phone that does not run on iOS or Android may face challenges, like limited support from developers or low adoption by customers, owing to the perception. Case in point, Microsoft's Windows Phone, which struggled for years to convince developers to build apps for the platform. However, when Google rejected Microsoft's requests to bring its suite of apps - the services of which are among the most popular worldwide - to its mobile platform, the company knew that Windows Phone would eventually fail.

Even Amazon found it out the hard way, especially when its Fire OS was based on a forked version of Android. Despite multiple attempts to woo developers to prefer Fire OS and convince customers to choose its tablets, Amazon - one of the biggest online marketplaces - could not help Fire OS take off, and its first Fire Phone failed.

Over and above these roadblocks, Musk may also have to deal with people's perception of him to be able to instill trust in customers.