Photographer: David Paul Morris/Bloomberg

Tesla Said in Talks With Labels for Music-Streaming Service

Tesla Inc. is in talks with record labels about creating its own music-streaming service, according to a person familiar with the matter.

It’s unclear if the automaker will ultimately decide to go forward with the service or continue with its current music partners, said the person, who asked not to be identified discussing private information. Tesla offers Spotify Ltd.’s streaming service in Europe, Hong Kong and Australia, and works with Slacker in the U.S. and Canada.

“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,” Tesla said in a statement, without directly addressing talks with labels.

Recode reported the Tesla talks earlier Thursday.

Spotify, the world’s largest music-streaming service with more than 50 million paying subscribers, has become a major source of growth for the music industry. Record labels wary of its expansion have encouraged more competitors to enter the industry, including Apple Inc. and Pandora Media Inc.

Spotify, Pandora and other digital-music companies have been pushing to get into more cars as wireless networks offer better wireless internet coverage, creating new threats against traditional radio and satellite radio.

— With assistance by Dana Hull

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