As Tesla pushes forward with plans for further automation of their vehicles, the company appears willing to cut ties with Mobileye NV (NYSE:MBLY) for the input within their automated systems. According to sources, Tesla is in discussions with George Hotz, offering Mr. Hotz a multi-million dollar bonus for help in the development of their autopilot and self-driving vehicle systems. As of now, Hotz has not officially accepted any such offer.
Shares of Mobileye NV (NYSE:MBLY) are down considerably in early afternoon trading as investors see such a move as a major hit for the company, who’s technology is used by several major automobile manufacturers. The stock has fallen 5.77% or $2.48 following this negative news, hitting $40.47 per share. About 7.52 million shares traded hands or 137.22% up from the average. MBLY has declined 9.39% since May 13, 2015 and is downtrending. It has underperformed the S&P500 by 5.71%.
Mobileye NV designs and develops software and related technologies for camera advanced driver assistance systems . The company has a market cap of $8.64 billion. The Company’s software algorithms and EyeQ system on a chip (SOC) perform detailed interpretations of the visual field in order to anticipate possible collisions with other vehicles, pedestrians, cyclists, animals, debris and other obstacles. It has 185.12 P/E ratio. The Company’s products are also able to detect roadway markings such as lanes, road boundaries, barriers and similar items, as well as to identify and read traffic signs and traffic lights.