Oct 17, 2013 04:27 PM EDT
Tesla Picks AT&T to Provide High-Speed Wireless Access

Tesla Motors has joined forces with AT&T to provide high-speed wireless service to its electric vehicles.

All Tesla EVs will come with AT&T network chips, which will provide two-way connections for services like stolen-vehicle location and roadside-assistance, according to a statement by AT&T.

Tesla, which is led by CEO Elon Musk, will also now provide navigation, internet access, and other entertainment systems on a 17-inch touch screen device.

 "Tesla is the most appealing car to technophiles," said Roger Entner, a wireless-industry strategist with Recon Analytics LLC in Dedham, Massachusetts, according to Bloomberg. "Connecting cars makes a tremendous amount of sense."

AT&T's service may also be used to provide in-car Wi-Fi hot spots, which will allow anyone in the vehicle to connect to the internet while using their mobile devices.

Senior vice president of devices at AT&T, Chris Penrose, announced the deal officially at GigaOm's Mobilize conference in San Francisco.

AT&T shares increased under 1 percent to $34.34 as of 3:04 p.m. on Oct. 17. Tesla's stock fell 0.9 percent to $181.97, according to Bloomberg Businessweek.

The automaker sells its Model S for a base price of approximately $70,000.

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