Is a Tesla-Apple Partnership for Model S on the Horizon? - Analyst Blog

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According to intriguing market speculations, Tesla Motors, Inc. ( TSLA ) is planning to join hands with Apple Inc. ( AAPL ) to add a new feature to its Model S range of vehicles. The collaboration will allow Tesla's customers to perform basic Model S car operations through Apple iPhones. In order to facilitate this, Tesla will likely update Model S firmware soon.

Tesla did not elucidate on the operations of the new system. Moreover, Tesla's vehicles will integrate the phone calendar into the dashboard, thereby offering better power management, and a navigation system which predicts busy routes, similar to Google Now ( GOOGL ).

However, it is to be noted that this new feature may find usage only after Apple launches the iOS 8 operating system. It also expected that Android handsets will get similar abilities in the near future.


Tesla is focused on enhancing Model S features in order to provide a better driving experience to customers. The other improved features include voice-controlled song selection and enhanced suspension control.

Recently, Tesla announced a warranty extension on its Model S drive unit to eight years and infinite miles. This is same as the warranty on the battery pack. Moreover, the electric carmaker has not put any restriction on the number of owners the car can belong to during the warranty period. Further, the warranty extension is being implemented on a retrospective basis to all Model S sedans.

The extension of the warranty reflects Tesla's belief that electric motors are more reliable than gasoline engines due to the lower number of moving parts and absence of oily residue or combustion byproducts. Interestingly, the electric carmaker believes that it should have provided this warranty from the beginning itself.

Currently, Tesla sports a Zacks Rank #1 (Strong Buy). Other well-placed auto stocks worth a look include CarMax Inc. ( KMX ) and Fox Factory Holding Corp ( FOXF ). Both these stocks have a Zacks Rank #2 (Buy).


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Business , Stocks

Referenced Stocks: AAPL , TSLA , FOXF , KMX , GOOGL

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