Boston, MA 10/18/2013 (wallstreetpr) – Tesla Motors Inc (NASDAQ:TSLA) has made a deal with AT&T Inc. to provide mobile connections inside Tesla cars. This goes one step ahead in providing futuristic cars for the customers. AT&T is set to provide information about the car’s location and performance for both maintenance and remote tracking. Apart from that they are also planning on providing the users with mobile internet to stay connected all the time.
How it works
AT&T is going to use its HSPA+ technology, also known as 4G, in these Tesla motor vehicles. Just like how a mobile phone functions, with the use of a data card, the vehicles are also going to be incorporated with a SIM / data card reader and a modem. In the past a similar deal was struck between the automobile giant and the telecom giant. They had included the necessary technology that provided static / diagnostic information for manual purpose and performance testing respectively.
Tesla Motors comes across as a company that is always innovating and turning futuristic as regards its automobile technology. S&P had on October 17, 2013, covered and analyzed the shares of Tesla and gave a “sell” rating with a target price of $150. S&P fears that Tesla shares may have been overvalues and thus the “sell” rating. Efraim Levy, Standard & Poor’s analyst, expressed concerns that the stock performance of Tesla is very dynamic in the market and advises investors to refrain from buying Tesla shares. He owes this volatility to good press and bad press of the company.
Impact on the Market
On Thursday, the company shares opened close to the previous day’s close at $183.54. It reached an intra-day low before climbing up to crest and finally finishing below the day’s open at $182.80. Most analysts fear that the company’s stock is over-valued.