The vehicle manufacturer are reportedly already working with record labels on their own music service that they can offer to those who purchase their vehicles.
A Tesla spokesman said: "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. Our goal is to simply achieve maximum happiness for our customers."
It is thought Tesla could be offering a Pandora-style radio to begin with, as well as options to have other tiers of service too.
It comes after Tesla CEO Elon Musk appeared to hint that he wanted to explore the options for music streaming when he met with shareholders in June. He told them it was difficult to find "good playlists or good matching algorithms".
Meanwhile, it was revealed this week that Tesla Inc. is working with the Shanghai government to look at manufacturing their cars in China to reduce importation costs.
Bill Russo, managing director of Gao Feng Advisory Co. and a former head of Fiat Chrysler Automobiles NV's Chrysler unit in China, told Bloomberg: "The entrance of Tesla into local production is a necessary step for Tesla to gain relevance in the world's largest EV market. Tesla's participation thus far has been limited to imported Model S and Model X cars. However, unlocking the mass market will require a price point that is only achievable with a locally produced Model 3."
Whilst Fu Yuwu, president of the Society of Automotive Engineers of China, added: "It's just at the right moment for Tesla to localise production because China now has suppliers with world-leading technology. Tesla will also need to develop customized mass-market products for Chinese market, which is unique from the rest of the world."