Musk's 'Alternative Phone' Plans Remain Mythical As Tesla's Chinese Rival Clears Final Hurdle For Smartphone Launch

Nio Inc NIO, the Chinese electric vehicle maker considered a rival of Tesla Inc TSLA, has achieved a crucial milestone in its journey toward smartphone production. The company’s nascent endeavor, speculated upon since last year, has now passed a significant regulatory hurdle.

What Happened: Nio’s inaugural smartphone, bearing the model number N2301, has successfully obtained an internet access license from China’s Ministry of Industry and Information Technology, CnEVpost reported on Friday, citing a government filing.

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The license, granted on July 10, is effective for two years. Designed with Android functionality, the device reportedly boasts 5G capabilities and supports dual-SIM card usage. Manufactured in Xiangtan, Hunan province, the specifics regarding its original equipment manufacturer remain undisclosed.

The smartphone has already secured a radio approval certificate, according to the report, indicating its compatibility with a range of network formats, including 2G, 3G, 4G, and 5G. Notably, the device also supports Ultra-Wide Band (UWB) technology, a distinctive feature for car key functionality.

Why It Matters: CEO William Li had hinted at Nio’s interest in smartphone manufacturing during the research phase, signaling the company’s exploration of potential synergies between the mobile device and its core automotive products. 

Exactly a year ago, the company set up Nio Mobile Technologies Co Ltd with a registered capital of $100 million, in a clear push toward making its smartphone vision a reality.

The upcoming release of Nio’s debut smartphone, anticipated in the third quarter, coincides with the introduction of the new ES8 model showcased during Nio Day 2022.

In contrast, while rumors of Tesla’s own smartphone project have circulated for some time, concrete developments remain elusive. Elon Musk, Tesla’s CEO, had briefly mentioned creating an “alternative phone” last year after acquiring Twitter (now called X), after the microblogging site’s uncertain status on mainstream app stores.

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Photo by T. Schneider on Shutterstock