Tesla (TSLA) Investors Should Keep an Eye on Mobileye (MBLY) as Driverless Car Tech Ramps

Those investing in Tesla (Nasdaq: TSLA) might be liking today's early stock action, but there's another company to watch if you'd like to see some one-off gains on the company's growth.

Mobileye N.V. (NYSE: MBLY) launched its IPO on Friday morning, with 35.6 million shares pricing at $25 and opening for trade at $36. The company is a leader in the design and development of software and related technologies for camera-based Advanced Driver Assistance Systems.

Telsa's Musk has been a fan of the self-driving car concept and recently said at the company's 2014 annual meeting "I'm confident that in less than a year, you'll be able to go from highway on-ramp to highway exit without touching any controls." This could be a boon for Mobileye not just from a pure orders standpoint, but further adoption of the technology throughout the industry.

While it isn't clear whether Mobileye will supply self-driving components and software to Tesla, Tesla did recently affirm that it had "a business relationship" with Mobileye.

Musk has also been a fan of using an optical system versus a sensor system, like what Google (Nasdaq: GOOG) is looking to use in the future. Most of the argument is that a sensor system would be too expensive. Coincidentally, Mobileye is focused mainly on a visual system with its components.

Other automakers like Daimler, BMW, Nissan, and more might also warm to the technology. Many higher-end autos currently have "smart" systems installed which aid with cruise control, lane drifting, and braking, though none would be deemed advanced enough to drive a car by itself.

Mobileye will be one to keep an eye on over the next several months as driverless car technology continues to make headlines. Shares are up modestly from the $36 open.

You May Also Be Interested In

• Rubrik IPO: 5 key things to know
• Centuri (CTRI) Opens At $23.75, IPO At $21 (earlier)
• Ibotta (IBTA) starts trading at $118, price IPO at $88