Tesla Phone Rumors Put to Rest as Analyst Points to SpaceX-T-Mobile Acquisition Instead

Despite years of speculation about a "Tesla Phone," Elon Musk has repeatedly debunked such rumors. However, one analyst sees potential for the Tesla and SpaceX ecosystem to enter the telecommunications market through a different avenue.

What Happened

TD Cowen analyst Gregory Williams suggested in a recent note that SpaceX could pursue an acquisition of T-Mobile, calling it the "clear choice" if the company decides to expand into terrestrial networks. Williams also mentioned AT&T as a potential target. He noted such a move could be financed through additional stock sales, with a T-Mobile purchase potentially costing roughly $300 billion. Separately, Wedbush analyst Dan Ives suggested SpaceX and Tesla may eventually merge, with some speculating that consolidation could happen this year.

Why It Matters

A combined SpaceX-T-Mobile entity would integrate T-Mobile's terrestrial 5G infrastructure with Starlink's growing Direct-to-Cell satellite constellation, potentially eliminating cellular dead zones across the U.S. This would instantly make SpaceX a facilities-based carrier with satellite differentiation—a significant competitive advantage that could pressure AT&T and Verizon. For Tesla owners, connectivity improvements through Starlink integration have been an ongoing area of interest.

The Bottom Line

While the strategic fit between existing Starlink-T-Mobile partnerships and complementary space-terrestrial technologies is compelling, Williams acknowledged the scenario remains highly speculative with no indication SpaceX is actively pursuing such an acquisition. Regulatory, financial, and execution hurdles would be enormous for a deal of that scale.