• US stock market daily report (September 29, 2015, Tuesday)

    As the arena of over-the-air updates (OTAs), wireless software updates to cars are heating up as carmakers are scramble to catch up with technology driving Tesla Motors, Inc. (TSLA - Nasdaq).

    Tesla is set to deliver an OTA for hands-free cruise control this month which will allow its electric Model S sedan to drive itself on freeways. Tesla has already introduced over 75 features via OTA ranging from raising the ground clearance of cars to boosting acceleration. Tesla is as much a tech company as an automaker, free of the constraints its rivals face.

    Technology that drives many functions of vehicles can be upgraded much in the same way as an iPhone software update. Automakers are gearing up their focus on OTAs to meet the challenging world of technology. The drawback dealers face - making software compatible with internal combustion engines, losing service revenue and security concerns.

    The expansive technology carmakers need to embrace, as vehicles increasingly resemble digital devices, has created an all new mindset. Every modern car is equipped with nearly 70 different computers, each with software that has to be managed and updated. The potential convenience for consumers is huge since some fixes would not require a trip to the dealership. Carmakers could see a savings as well since up to half of warranty repair issues and recalls can be corrected through OTAs.

    Product strategy head for Israeli OTA firm Redbend, Oren Betzaleli said, "Today, OTA is so important to car makers that we can get in right away to see the VPs of manufacturing."

    While several big carmakers are already using OTA updates, they are for the most part, geared toward onboard entertainment systems. Experts have said that OTAs are the best way to minimize breaches by repairing weak links quickly.

    Contributed by Millennium Traders
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