According to a Recode report, Tesla has been talking to the music industry about creating its own music service. Many tech commentators have rushed to praise the move as brilliant on Elon Musk’s part, as Tesla is looking to launch “a multi-tier Pandora-like service.”

No so fast.

One reason for praising the streaming music launch: it’s a lucrative business. Let’s look at some numbers of the leader of the streaming music pack. Spotify, the leader in subscribers with 140 million active monthly users (50 million paying), gained €2.934 billion in revenue in 2016. Sounds great, right? However, it also has a net loss of €539 million. What’s the problem? One of them is that the royalty it pays to the music industry is something like 52% to 55%.

So, it is difficult to make money for the streaming music business alone, you say. Is there synergy with other products in the company’s portfolio? Let’s look at Apple Music. According to a survey by PayPal and SuperData Research in September 2016, iTunes is still the most popular music platform with 30% in the market of paid digital music content. Apple’s streaming music platform, Apple Music is at 7%, with Pandora at 23% and Spotify at 13%. Apple Music clearly enjoys synergy with iTunes platform. How about Tesla as a platform? Apple sold over 50 million iPhones in the first quarter of 2017. Tesla has sold 100,000 Model S’ this year and holds the down payments of 400,000 model 3’s. At this level, they wouldn’t have enough subscribers to make the streaming music numbers work for the company. This is still a profit game. While Elon Musk’s “vertical integration” vision is a great one, streaming music isn’t the way to do it. Spotify was able to reduce the percentage it pays to the labels to 52% only with certain guarantees of subscription growth from its current 50 million subscribers. One can only imagine that Tesla would have to pay more, with the maximum number of subscriber at 127,000.

Note: 127,000 is an estimated total number of Tesla sold through Q1 of 2017. Source: Tesla quarterly reports.