Mobileye, the Israeli company that provides cameras and software for Tesla’s Autopilot feature, is distancing itself from the Silicon Valley electric-car maker — and investors aren’t liking it.
Shares of Mobileye are down sharply on the New York Stock Exchange after the company announced Tuesday that it won’t be extending its contract with Tesla beyond its EyeQ3 smart-camera product. It’s unknown exactly when that contract would end, but the EyeQ4 is reportedly due out in 2018.
“We think that that’s not in the interest of Mobileye to continue with Tesla in that area,” Chief Technology Officer Amnon Shashua said during the company’s earnings call, according to Bloomberg.
Tesla’s Autopilot technology is under investigation by two U.S. agencies after a fatal crash in May of a Model S that had enabled Autopilot. That, along with a couple of other accidents that might or might not involve Autopilot, has prompted some critics and consumer groups to say Tesla has failed to adequately inform its customers about the technology.
“We believe that Mobileye may be concerned about their own reputation risk with Tesla potentially trying to push the technology beyond what it was meant to do,” Joseph Spak, an analyst with RBC Capital Markets, reportedly wrote in a note to clients.
That concern has caused its shares to fall about 8 percent, or about $4, to $45.30.
Mobileye wants people to know it has more than just its relationship with Tesla going for it. “Financially, Tesla is not material to the financial results of Mobileye,” Shashua also said during today’s call.
Mobileye, which went public in 2014, makes collision-avoidance technology for other car makers, including GM, Volvo, Hyundai and Renault. Earlier this month, it also entered into a partnership with Intel and BMW on self-driving cars.
Tesla has not yet responded to SiliconBeat’s request for comment.
Mobileye (MBLY) Stock Price | FindTheCompany
Photo: The inside of a Tesla vehicle is viewed as it sits parked in a new Tesla showroom and service center in Red Hook, Brooklyn on July 5, 2016 in New York City. (Spencer Platt/Getty Images)
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