Mobileye (MBLY) Press Conference with Intel/BMW Seeks to Overshadow Autopilot Crash

Mobileye (NYSE: MBLY) shares are backpedaling this morning as investors react to the Tesla Model S autopilot crash and the company's response to that crash, but also on the docket for today is the press conference with Intel (NASDAQ: INTC) and BMW. The conference, scheduled to start at 10AM ET, is expected to reveal an autonomous car partnership between the three.

The partnership involving Intel is seen as key given that it suggests the world's largest chip maker doesn't want to compete with Mobileye. Intel is expected to provide the CPU hardware and Mobileye, in its EyeQ5 design, does the mission-critical work on its ASIC.

Analyst Chris McNally at Evecore ISI believes that "this could be a seminal turning point in the bull / bear debate around Mobileye's place in Level 4 autonomy and competition / collaboration with semiconductor companies. Intel’s decision to collaborate instead of compete appears to be a vote of confidence in MBLY and the efficacy of its approach to achieving full autonomous."

Shares of Mobileye last traded down 1.9% in pre-open trading Friday but were down as much as 4% after-hours in the wake of the crash headlines. Yesterday, shares advanced 10% in anticipation of today's conference call.

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