Mobileye (MBLY) Falls as Tesla (TSLA) Relationship to Come to an End
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(Updated - July 26, 2016 9:20 AM EDT)
Mobileye (NYSE: MBLY) is weak early Tuesday after saying it will no longer be working with Tesla (NASDAQ: TSLA) beyond the EyeQ3. Mobileye said it will continue to support and maintain the current Tesla Autopilot product plans.
Mobileye's CTO/Co-Founder, Prof. Amnon Shashua, suggested on the call that Tesla's recent autopilot accident played a meaningful part in the decision, leading some Wall Street analysts to believe that that the decision was made by Mobileye.
The company said its "reputation and to the industry at large" is at stake and it will look for partnerships that go beyond the typical OEM / supplier relationship, like the recently announced collaboration with BMW and Intel.
Below is the statement the company provided to StreetInsider:
"Mobileye's work with Tesla will not extend beyond the EyeQ3. We continue to support and maintain the current Tesla Autopilot product plans. This includes a significant upgrade of several functions that affect both the ability to respond to crash avoidance and to optimize auto-steering in the near term, without any hardware updates.
Nevertheless, in our view, moving toward more advanced autonomy is a paradigm shift both in terms of function complexity and the need to ensure an extremely high level of safety. There is much at stake here, to Mobileye’s reputation and to the industry at large. Mobileye believes that achieving this objective requires partnerships that go beyond the typical OEM / supplier relationship, such as our recently announced collaboration with BMW and Intel. Mobileye will continue to pursue similar such relationships."
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