Tesla Motors, Inc. (TSLA) has signed a multi-year agreement with AT&T, Inc. (T), under which the automaker intends to provide high-speed wireless internet to the current and upcoming electric cars in North America. The connectivity will support Tesla’s remote engine diagnostics, telematics and information and entertainment offerings like Internet radio, web browsing, live traffic, weather and navigation.
Cars with high-speed connectivity are very popular in the automobile industry. Recently, in the Consumer Electronics Show, General Motors (GM) announced that its Chevrolet brand will be featuring the OnStar 4G LTE connection, which runs on AT&T’s network.
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This connection will provide high-speed data and turn the car into a mobile hub. It will offer customers convenient access to apps and services that require a high-speed cellular or data connection.
Separately, Tesla announced that it installed four supercharging units in Lusk, Wyoming last month. The electric carmaker is currently building the first coast-to-coast network of quick-charge stations.
This network of superchargers will greatly benefit customers driving across the country. Supercharging stations provide free of cost charging to Tesla customers. Moreover, its vehicles get fully charged within half an hour, compared to over 4 hours required by normal charging stations.
Last month, Tesla announced the opening of its first supercharger station in New York. At present, the automaker has more than 48 superchargers in the U.S., a large portion of which are located on the West Coast.
Tesla is planning to install supercharging stations in Arizona, New Mexico, Utah, Colorado, Minnesota, Wisconsin, Illinois, Indiana, Ohio and Pennsylvania. Although the company is working toward developing a supercharging network, the number of charging stations still remains drastically low compared to gasoline stations.
Tesla currently has a Zacks Rank #4 (Sell). We are concerned about the continued losses, production constraints, high prices and mounting R&D and SG&A expenses of the company. A better-ranked automobile company is PACCAR Inc. (PCAR), which carries a Zacks Rank #2 (Buy).