LiveOne Stock Price Seeing 15% Pre-Market Pop

LiveOne's stock (NASDAQ: LVO) was a notable gainer on Monday, adding 23.5% on the day, and the momentum seems to be carrying through into this morning's pre-market session, with further gains of 15.65%.

The stock's surge is attributed to a substantial increase in the subscriber base due to a renewed partnership with automaker Tesla. This collaboration has resulted in nearly 100,000 new subscribers, bringing the total subscriber count to 450,000.

Tesla (NASDAQ: TSLA) recently ended its offering of free premium music streaming services to many owners, leading to a shift requiring a subscription to LiveOne. This strategic move enables Tesla vehicle owners to either subscribe to LiveOne's services or opt for an ad-supported tier.

LiveOne and Tesla have a dynamic partnership history. Initially partnering in June 2022, the collaboration saw a refresh in October 2024. The latest agreement encompasses Tesla replacing its streaming button with LiveOne's interface. In exchange, LiveOne has rolled out discounted music packages tailored for Tesla customers, further incentivizing them to choose the premium subscription option.

CEO Robert Ellin has highlighted the significance of business-to-business (B2B) partnerships for user engagement. Ellin hints at potential additional collaborations coming in 2025, underscoring LiveOne's strategy to enhance its market presence and subscriber growth.

LiveOne's renewed partnership with Tesla illustrates the critical role strategic alliances play in the company's substantial subscriber growth, which is now reflected in the positive performance of its stock. The synergistic relationship between the two companies is expected to continue driving growth into the future.