London, 2nd April 2014 - Telefonica today announced an agreement with Tesla, the world’s leading electric vehicle (EV) manufacturer, to provide Machine-To-Machine (M2M) connectivity for the Tesla Model S in Europe. Telefonica and its M2M World Alliance partners will provide connectivity for Model S across multiple countries in Europe, including in Germany and the United Kingdom on Telefonica’s O2 network, in Spain on Movistar, and in the Netherlands on KPN.

Telefonica’s global M2M solution - powered by Jasper - will enable connectivity for Tesla’s industry-leading in-car infotainment telematics including navigation, online music, and internet browsing, and remote vehicle diagnostics that relay information about the car’s safety, security and performance to the driver and Tesla service in real time.

The Tesla Model S, an award winning five-door sedan, was launched in 2012, with deliveries beginning in Europe in 2013. Its state of the art features include remote driver support and a connected infotainment control centre. The 17 inch touchscreen puts rich content at the fingertips of drivers and passengers, seamlessly integrating media, navigation, communications, cabin controls and vehicle data.

The agreement, which establishes Telefonica as Tesla’s largest European connectivity partner, is supported by KPN in the Netherlands and Belgium as part of the M2M World Alliance, simplifying Tesla’s deployment of connected cars.

With its proven M2M technology, Telefonica’s services offer flexible and reliable connectivity solutions for Model S customers across Europe. The ability of Telefonica and KPN to work together locally will further improve the customer experience by maintaining a smaller pool of suppliers with a common M2M service.

José Luis Gamo, CEO at Telefonica Multinational Solutions, said: “As we accelerate our transformation into a digital telco we see lots of opportunities to empower consumers. Connected cars that provide drivers with more information and a better and safer driving experience is a perfect example of this. Tesla is one of the world’s most forward thinking and exciting businesses. We share their passion for innovation and are thrilled to be working with them to deliver a superb connected in-car experience to Tesla drivers across Europe.”

The Connected Car market will achieve mass-market penetration in the next few years. The number of vehicles with built-in connectivity will increase from 10 per cent of the overall market today to 90 per cent by 2020, according to the Telefonica Connected Car Industry 2013 report, which features contributions from eight of the world’s largest car manufacturers.

Jimmy Wind, Managing Director m2m/New Business of KPN said: "This is a great example of how the M2M World Alliance delivers simple and effective solutions to major multinational customers. We're delighted to work with Telefonica supporting such a prestigious company as Tesla”