Tesla is developing support for Apple's CarPlay system in its vehicles, according to people with knowledge of the matter. Mark Gurman reports on "Bloomberg Tech."

California

Tesla is developing support for Apple CarPlay, reversing its longstanding position against integrating the popular iPhone feature into its vehicles. The decision comes as Tesla faces declining sales and growing competition, particularly in China, with executives noting that CarPlay is a highly requested feature among car buyers.

Apple, which no longer pursues its own car project, provides CarPlay integration tools to automakers without direct agreements or payments. The integration is expected to help Tesla improve its sales figures and aligns with CEO Elon Musk's compensation targets, while also benefiting Apple by keeping consumers within the iPhone ecosystem.

Tesla developing support for Apple CarPlay

The context is so interesting here because this feels a real about face. Why would now be the right time for two companies to work together. Yeah this is absolutely a huge reversal for Tesla. There's two things going on here. One as we've discussed on this show many times Tesla sales have not been as hot as they have been in years prior. There are a lot of new players. There's a lot of pressure on the company particularly in China to up its sales game. We saw some executives leaving earlier this year because sales have not been so hot. What is the most in demand feature in these right now when making purchase decisions. Well it's Apple CarPlay. People like to walk into their car and have their iPhone interface projected onto their infotainment system. I use it in my car. People are not buying Tesla's because of it. In some cases people are buying other cars because of the well integrated support. Tesla wants to hit every lever it could to improve sales. You do that with CarPlay. Right. And I would expect them to go down the list of all the requests that people have for wanting to buy a new car and hit those one by one to help sales. It's time for Tesla to do that as good as their infotainment system is. The second thing of course is Elon Musk's one trillion dollar pay package which includes some metrics particularly around selling a certain number of vehicles and integrating CarPlay could potentially help with that. And so I think this is a good thing for Tesla. They have engineers developing support for this testing support for this. And we anticipate a rollout unless it is canceled of course which Elon Musk is known to do with some features late in development in the coming months. Mark you worked with Ed on this story. And I'm interested as to well what is in it for Apple more broadly. Elon in many ways had refused to do deals because he didn't want the sharing of data particularly when Apple was basically building a competitor at one point. Apple backed away from that. Now how do they win by getting CarPlay within a Tesla. You know from Apple's perspective this is something that they don't really have to participate in. There's no agreements behind the scenes. Apple provides this functionality. It provides developer tools for car makers to integrate this into their cars. So there's no money exchanged here. It's really CarPlay a iPhone ecosystem feature. If consumers rely on their iPhone for use of their car for Apple that keeps people buying iPhones upgrading iPhones keeping them locked into the ecosystem. So that's the business play for them. And Tesla right has a you know over a third of the U.S. market. They are a gigantic player in terms of car sales globally as well. And aligning Tesla with the iPhone brand. And that's great for Apple whether they're making money directly on it or not. I think Elon is going to continue to criticize Apple on his X platform and the like. Oh I'm sure of it. But you know his relationship with Apple has taken a turn since Apple stopped developing its own competitor. He relies on them very heavily now for distribution of grok and X. So it's pretty critical for him to be on Apple's good side.

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