Tesla Motors, Inc. Embraces New Tech: Ditching Keys for Apps and Paying Hackers?

Tesla continues to lead the way in blurring the lines between the auto manufacturing and technology industry. Here are the latest geeky moves by the electric car maker.

Aug 23, 2014 at 2:29PM

Tesla (NASDAQ:TSLA), headquarters in Palo Alto, Calif., is just as much a technology company as it is a car manufacturer. From the 17-inch display in the all-electric Model S to the company's signature over-the-air software updates, Tesla is true to the Silicon Valley culture. It's no wonder the company is covered by journalists at major tech news sites like Re/code, The Verge, and Engadget.

The lines between the technology and auto industry will continue to blur at Tesla, and likely at most other auto manufacturers, too. But some recent news offers another reminder that Tesla wants to lead the charge in the emerging hybrid of tech on wheels.

Model S Interior

Model S interior. Image source: Tesla Motors.

Hiring hackers?
Amidst the crowd of hackers this summer at Def Con, a security conference in Las Vegas, Tesla CEO Elon Musk and "hacker princess" Kristin Paget, who leads Tesla's digital security efforts, were searching for 20 to 30 security researches to hire, according to The Wall Street Journal.

What would hackers do at Tesla?

"It's a super-car that's connected to the Internet," Paget told the Journal. "Use your imagination."

Tesla already glorifies security researches on its website, where it lists 20 names in its "Tesla Security Research Hall of Fame" that have helped identify bugs for the company. But now, apparently, Tesla wants to build its own internal team of paid hackers.

It's not surprising that Tesla is ramping up its efforts in digital security. The Model S is probably the most connected car on the market. Using the Internet, Tesla allows owners to control basic functions like locking and unlocking the doors, flashing lights, and adjusting climate controls from a Tesla app. Further, over-the-air software updates, which zap changes to the vehicle's software using the Internet, not only improve the on-board software on the 17-inch screen, but sometimes offer new physical abilities for the Model S itself.

Tesla Mobile App

Image source: Apple App store.

As reliant on digital information and communications as the Model S is, it's important that Tesla is proactive in finding potential security bugs.

Ditching keys for apps?
Tesla dropped another surprise this month when it announced its next major update for the Tesla Model S operating system. While the most useful change in the update may be related to improved maps and navigation, the most interesting tidbit was the ability to use the app in place of the keyfob. Notably, owners will have to wait until the mobile app is updated with the new feature before they can test out this new tech.

As Electrek's Seth Weintraub pointed out, the ability to turn on the car with the App and without the keyfob was noted in the description of the v6.0 update.

App Start Model S Tesla

Source: Electrek. Edited to point out applicable text.

9to5Mac speculates Tesla may tap into the fingerprint sensor on Apple's iPhone 5s and future iPhones since the company is making Touch ID available to third-party apps when the new software is launched next month.

To be clear, the innovation here is not that Model S owners will be able to start their car with an app. Many cars already have this feature. Instead, the major accomplishment is that Tesla suggests when it says "in case you forget your keyfob" that you will actually be able to drive the car without a keyfob in the car. Instead of using the keyfob to identify the owner, Tesla might choose to use owners' fingerprints with Apple's Touch ID.

Touch Id

Image source: Apple.

Tesla has been at the forefront of integrating tech into its vehicles since it launched the Model S in 2012. With its own operating system and a built-in 17-inch touch-screen display, however, Tesla has a key advantage over its competitors in controlling the experience. But, as big and experienced tech players like Apple make their way into the center console, competition for the increasingly flashy tech on wheels should heat up.

Warren Buffett's worst auto-nightmare (Hint: It's not Tesla)
A major technological shift is happening in the automotive industry. Most people are skeptical about its impact. Warren Buffett isn't one of them. He recently called it a "real threat" to one of his favorite businesses. An executive at Ford called the technology "fantastic." The beauty for investors is that there is an easy way to ride this megatrend. Click here to access our exclusive report on this stock.

Daniel Sparks owns shares of Apple and Tesla Motors. The Motley Fool recommends Apple and Tesla Motors. The Motley Fool owns shares of Apple and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information