The idea of Tesla entering phones has long been theorized on the Internet. Do a search on YouTube and you will come across a number of videos about Tesla getting into phones and taking on the iPhone.

So far, all of that is nonsense. There is nothing from the company (or Elon) that concretely shows the entry into the mobile phone market.

That said, it is still the major device for our communications, not only voice but internet activity. There are rough 2 billion phones sold each year, with 6 billion people using them. This is an enormous market that is worthy of looking at.

Of course, we have to keep in mind that, at some point, the smartphone will be replaced. What will that be? Google and Meta are banking on glasses. Others are working on other devices such as wearables.

The bottom line is we are dealing with something that is completely up in the air. Hence, even the idea of entering phones is the second speculative process. In 5 years, will phones be the major ramp to our interactions?

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Will Elon Musk Get Into Phones?

The reason this is becoming a valid question is the ability for a company like Tesla to manufacture. For the moment, Tesla is a solid manufacturer, leading the way in innovation and agility.

It is a situation that could get a massive boost. Grok4 has stunned much of the AI world. The key point with this model is not the fact that it is now leading in most every benchmark. That will get erased as the next generation of models leapfrogs Grok4 in certain areas.

What should stand out, and be emphasized, is the pace at which this is occurring for xAI. The company was only started 2 years ago. Think about that for a moment. Musk entered a competitive market where Apple, Google, and Meta were all involved. These companies had both enormous databases along with huge numbers of users. The idea that something new would catch up in just 2 years was a bit absurd.

Grok4 made the absurdity a reality.

Manufacturing on Steroids

The most impressive aspect to Grok4 will be its integration into company workflows. We now have a model that can develop new businesses. Within a company, this means new product lines or divisions.

Engineering, physics, and the other sciences are areas that Grok4 excels. It is now better in each field than any PhD. The announcement has made some take a closer look as to whether AGI was achieved or not. Ultimately, it doesn't matter either way since that is more a definition state. The capabilities are is what matters.

Grok4 is going to bring PhD capable people to Elon's companies in every field. When it comes to manufacturing, this is crucial. Its ability in Physics, for example, could reap huge rewards.

Ultimately, Tesla, with this technology, could manufacture anything. Pick a product from an industry and it is something the company could enter. Of course, the idea of manufacturing tractors might not be worthy of any conversation.

But what about phones?

Here we see the connection to xAI and Grok. People access AI through their phones, something that many companies are seeking to leverage. The ability to deliver hardware is crucial.

We know that Grok4 is already in Optimus. That product is still a year away from mass production. It is also a new field.

Smartphones are more than 15 years old. Bringing a new product out in this industry is much easier since the suppliers exist. Certainly, there would likely be novel innovations. However, the base components like screens, cases, and boards are available.

We will have to keep an eye on things. I find it hard to believe that Tesla/xAI will not get into the manufacturing of a device for Grok4 to reside upon. Tesla vehicles and Optimus area good starting point but it does overlook a major part of the market.

Posted Using INLEO