Tesla Considers Launching Its Own Music Streaming Service for 'Exceptional In-Car Experience'

Electric carmaker Tesla said Thursday it was considering ways to enter music streaming amid a report it may launch a unique new service.

The high-end carmaker, which already has a tie-up with streaming leader Spotify in some international markets, said it was aiming at ways to please drivers.

"We believe it's important to have an exceptional in-car experience so our customers can listen to the music they want from whatever source they choose," a Tesla spokesperson said.

The company was responding to a report that Tesla had reached out directly to major music labels about creating its own service.

Technology news site Recode said Tesla was discussing the creation of a service unique to the automaker which would be integrated into the cars, which are already connected to the Internet.

Tesla would offer multiple levels of service starting with a radio-type platform akin to Pandora, Recode reported, quoting anonymous sources.

The move comes as music streaming rapidly grows and becomes the preferred method of listening for many motorists rather than terrestrial radio.

Spotify has maintained its dominance of streaming despite challenges from upstarts such as Apple Music and Tidal and more established players such as Deezer and Rhapsody.