Why Tesla Will Add Internet-based SiriusXM streaming to Model 3, Model Y and Others

Is Tesla developing a SiriusXM streaming app? Not a Tesla App
Is Tesla developing a SiriusXM streaming app?
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Tesla's Model S and Model X vehicles offer SiriusXM radio through dedicated hardware that includes an antenna to receive the satellite-based signals. This is a premium feature that Tesla only offers in their Model S and X line. The Model 3 and Model Y, unfortunately, lack the SiriusXM hardware and are not capable of streaming the service.

Many fans of the satellite-based network are forced to either buy a car unit and hook it up via the auxiliary jack or stream audio from their phones to the car via Bluetooth. Although, neither situation is ideal.

Cost Cutting

Over the past few years we have seen Tesla take several cost-cutting measures on the Model 3 and Model Y to help keep the cars more affordable. Some design choices have always been there for cost reasons, while others were changed due to efficiencies or to streamline manufacturing. Tesla is extremely agile and always looking for benefits that pay off in the long term. While some of their choices have paid off, some have not.

For example, Tesla chose not to include a dedicated rain sensor in their vehicles and instead relies on cameras and AI to detect rain. Unfortunately, this is one area where Tesla's solution has fallen short. While the vehicle's automated wipers have improved in the last couple of years, they're still not as reliable as a dedicated rain sensor.

It’s a similar case with Tesla’s automatic high beams, where the vehicle turns on and off its high beams automatically based on how dark it is and whether there are any oncoming vehicles. This feature performed rather poorly for several years and only recently has Tesla's auto high beams become more accurate and reliable.

Another cost-cutting choice Tesla has made along the way has been the removal of HomeLink garage door support on the Model 3 and Model Y. Adding HomeLink on these vehicles costs extra and needs to be performed by Tesla service after delivery. However, Tesla now supports some WiFi based garage door openers through myQ.

SiriusXM Internet Streaming Solution?

Tesla has always had a long-term vision for their vehicles and has bet heavily on software to be able to make up for missing hardware in the future. With the automatic wipers, Tesla chose to skip a $4 sensor because they felt they could save money and do the same or better job with a software-based solution.

And how does this relate to SiriusXM? When Tesla designed the Model 3, they needed to make a lot of cost-based decisions. The Model S and Model X included SiriusXM hardware, but they chose to exclude it in the Model 3 and Model Y. It’s clear that the hardware was not being provided by SiriusXM for free. There’s no doubt they needed to cut costs to offer the Model 3 at $35,000, but did they remove SiriusXM hardware because Tesla thought they could provide a software-based solution? Maybe. After all, they did it for their automated windshield wipers, high beams and garage door opener support. Why not SiriusXM?

Tesla offers a variety of music streaming services such as Apple Music and Spotify. In 2019 their v10 update, Tesla added the ability to stream Spotify. In 2020, Elon Musk announced that the Tidal streaming service would also be coming to Tesla vehicles. More recently, at the end of 2020, Tesla enthusiast, GreenTheOnly, started spotting references to other music services such as Apple Music, Pandora and Audible in Tesla firmware. Apple Music was finally added in Tesla's 2022 holiday update.

So the question is, why would Tesla leave out the SiriusXM streaming service when it could save them millions of dollars per year by not including the SiriusXM hardware in their more expensive vehicles? Although SiriusXM hardware provides some advantages, such as not requiring an internet connection, it could also fail in certain situations such as when traveling through tunnels. We think we’ll see Tesla add support for SiriusXM's streaming service to all vehicles in a future update.