Elon Musk said he is testing Steam integration in-vehicle
Tesla
Elon Musk is a busy guy, but he even takes time to play video games. The Tesla CEO told his 105.6 million followers on Twitter that he was playing games. But when you're Musk, this is still working. He was testing the highly anticipated Steam integration with Tesla. It's not known which one of the 30,000 Steam games he was playing (or should I say testing), but the fact that he is telling the world he is trying it out could mean the release is imminent.
Steam is to the PC gaming world what Tesla is to the electric vehicle market. With nearly 20 years under its belt, it's estimated Steam takes up 75 percent of the global market share for the distribution of PC games. More than 100 million users are on the platform, and it is showing no signs of slowing down. In addition, it is releasing Steam Decks, a mobile device to take all of those games with you.
Tesla's gaming does not quite compare to Steam, with about 20 games available, and most are classics. However, this integration could put Tesla's gaming platform light years ahead. In fact, the new Model S and Model X have a gaming computer that keeps pace with PlayStation 5 and XBox Series X.
The new system has ten teraflops of processing power. A teraflop is the computer world's version of horsepower, and yes, 10 is a lot. The PS5 has 10.28, and for those keeping score, the Playstation 4 has 1.84. For anyone who has played the two consoles, you can attest to noticing immediately the difference those additional 8 TFLOPS provide.
Musk wants the Tesla to be the most fun you can have in a car. By adding this kind of computer power to the Model S and Model X, he ensures that the system can handle the top-end video games. He has demonstrated the game considered the most graphically demanding, Cyberpunk 2077. These complex and visually stunning video games also occupy a lot of space. The average Steam user has 55 games on their account. However, it looks like Tesla has already started to solve these problems.
With Tesla update 2022.24 Tesla now lets you uninstall games from Tesla Arcade. There's currently no need to uninstall a game because there's ample storage, but that won't always be the case.
The amount of storage available for games will vary depending on the MCU in the vehicle. While vehicles with MCU 2 only contain a 64GB hard drive for the entire vehicle (OS, games and data), newer vehicles with MCU 3 include up to a 256GB solid-state drive. Out of those 256GB, 155GB is currently reserved for games, so they'll be able to store significantly more games before requiring an external hard drive.
While there is still no release date for the Steam integration, a big event is on the horizon for Tesla, AI Day Part II. The event was initially scheduled for August 19 but has been pushed back to September 30. Musk has promised "many cool updates" at AI Day; perhaps Steam integration will be one of them.
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Tesla currently offers free music streaming with every Tesla, although you’ll need Tesla’s Premium Connectivity package to stream over the vehicle’s cellular data or be on WiFi. In North America, Tesla includes what they used to call “Streaming,” and have just recently renamed to call LiveOne. However, in Europe, where LiveOne isn’t available, Tesla provides a free license for Spotify, which allows owners to stream the service for free without having to subscribe.
However, it looks like this may be coming to an end. We recently received an anonymous tip that Tesla would be ending this free benefit for its European customers. While we haven’t been able to confirm this just yet, it does seem likely. Let’s take a look at why we think this could be happening.
European Spotify Premium
Tesla’s European customers receive a free license of Spotify Premium right now – whether they’re subscribed to Spotify Premium or not. This means customers can listen to ad-free music, have unlimited skips, play music in any order, and be able to sort and queue songs for listening. However, the account is limited to listening in your Tesla, much like LiveOne in North America.
You’re also not given the credentials to the Spotify account, preventing you from using the same account on other devices. If a customer decides to subscribe to Spotify Premium on their own, they can still log in to their account in their Tesla and share the same Spotify account and playlists with other devices, just like you can in other regions.
Removal of Free Premium Benefits
Given the tip we received and some other recent information, we expect this change to happen. This appears in line with other changes to Tesla’s streaming services, including the changes to Slacker/LiveOne Radio in North America.
As Tesla adds additional music services like YouTube Music, Amazon Music, Apple Music, and SiriusXM in the future, it becomes more likely that Tesla vehicles have a music service someone may already subscribe to. This is especially true with the addition of Amazon Music, which is included with an Amazon Prime subscription. According to Statista, there are now over 180 million Amazon Prime members.
Subscribing to a music service has also become much more popular in recent years. In the United States alone, there are now more than 90 million music streaming subscriptions (Forbes), and that trend continues to grow year over year.
While Tesla likely only pays a small fraction of what a customer would pay for a Spotify Premium subscription, even if it’s just 50 cents per month, that amount would definitely add up with the more than 6 million Teslas on the road today.
Tesla certainly has the data to understand how many customers use the service that’s included in the vehicle and will use this to make the transition at the right time. At some point, it just doesn’t make sense to continue to pay for a service most customers don’t use.
Timeline
We were told that this change would happen this year, so it may not be much longer before we hear about this change officially from Tesla. What’s not clear is whether this would impact all customers or potentially only new customers. A lot may depend on their deal with Spotify and LiveOne and whether it’s based on a flat fee per vehicle or a monthly/yearly fee.
Based on industry changes alone, we would expect this to impact all customers. However, we’ll have to wait for official confirmation from Tesla, as until then, this should be considered a rumor.
Tesla purchased SolarCity, a large solar and backup installer, back in 2016 and shortly thereafter began installing its unique Tesla Solar Roof, regular Tesla Solar panels, and Tesla Powerwalls for both commercial and residential customers.
However, as the years have passed, Tesla has lost its interest in the actual installation portion of the business. They’re more than happy to continue producing Solar Roofs and expanding Powerwall production, but for the most part, their in-house rate of installations has slowed drastically.
Since Q2 2020, Tesla has seen a 10% or greater drop per quarter in the number of in-house Solar Roof, Solar, and Powerwall installations every quarter.
Third-Party Certification
Tesla has instead begun to certify third-party installers throughout North America and Europe for Powerwall and solar panels and within the United States for Solar Roof.
Tesla launched the Certified Installer Program in 2020 and said it has approximately 2,000 certified installers in over 14 countries—and those certified installers have set up over 1 million installations. James Bickford, Tesla’s Director of Global Sales, Residential Energy Products, announced the expansion of the Certified Installer Program and its new push on LinkedIn.
The Certified Installer Program provides several things to get third parties ready to install and commission Tesla’s home energy ecosystem, including virtual and in-person training, on-site training, custom installation tools, and the Tesla One Software Platform.
In addition to those supports, Tesla’s Partner Platform offers marketing support resources and a dedicated access system for a personal Account Manager from Tesla.
Tesla One Dashboard
The Tesla One dashboard offers third-party installers a one-stop-shop platform for managing quotes, installations, and repairs in one mobile app.
It is a convenient-looking application that lets third-party installers see what tasks they need to perform for specific installations and also helps them scale particular installations to customer requirements.
While this isn’t a new direction for Tesla overall, we’re seeing a distinct move in the energy business from Tesla as a first-party installer of its products to a more hands-off approach where local electricians and contractors will install Tesla products under its auspices.
We’re interested to see where Tesla continues to go with this, as they’ve seen their Powerwall business expanding in the last few years, while Tesla Solar and Solar Roof have dropped off many people’s radars lately.
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