Mobileye NV (NYSE: MBLY), the largest supplier of camera-based advanced driver assistance safety systems, announced on Tuesday that it would no longer be working with Tesla (NASDAQ: TSLA) on extending beyond the EyeQ3 product, which the processor currently used in Tesla vehicles to provide the image analysis intelligence that enables Tesla’s driver-assisted autonomous tech.
Mobileye will continue to support and maintain the current Tesla autopilot product plans and to work on improving the performance of EyeQ3 use in Tesla cars, but would not continue beyond the current product cycle. Mobileye supplies cameras and technology for Tesla’s Model S sedans, including machine learning capabilities for its Autopilot suite of features, which is under scrutiny after a fatal crush. While the Jerusalem-based company did not directly state that ending up corporation with Tesla is because of the accident. Instead, Mobileye will focus on technology for fully autonomous vehicles, which it called “turning point” in the auto industry.
“I think in a partnership, we need to be there on all aspect of how the technology being used, and not simply providing technology,” said by Mobileye CTO Amnon Shashua.
Earlier this month, Mobileye announced a partnership with Intel Corp and BMW AG to design fully autonomous cars by 2021. The company said it is also in the final stages of signing a definitive contract with Volkswagen AG to provide its road experience management technology, which provides real-time data to help anticipate collisions and obstacles.
Mobileye shares fell 7.02% to $45.84 in New York Stock Exchange trading on Tuesday. The stock is up 27% over the past three months but down 18% over the past year.
The company said Tuesday it earned $26.9 million in net income in the second quarter on revenues of $83.5 million, a 32% net margin. It also reported second-quarter profit of 17 cents per share, surpassing the 15-cent average estimate of 16 analysts surveyed by Bloomberg, and revenue of $83.5 million that also beat the average estimate.