No longer provides technical support for Tesla’s automatic driving: Mobileye will terminate cooperation with Tesla

At the just-concluded quarterly earnings conference, Mobileye announced that after the current contract expires, it will no longer provide technical support for Tesla's Autopilot. Cooperation with Tesla is limited to EyeQ3.

Mobileye is Israel's advanced driver assistance system (ADAS) manufacturer and its EyeQ3 processor is currently used on Tesla models to provide image analysis services to support Tesla's AutoPilot assisted driving function.

On May 7, 2016, a Tesla Model S crashed into a white trailer when driving on the two-way highway in Florida, causing Tesla driver Joshua Brown to die. Although Tesla CEO Elon Musk stated that "the responsibility for Autopilot system accidents is not part suppliers, please point your finger at Tesla."

But Mobieye doesn't seem to buy it. Mobileye CTO Amnon Shashua said on the conference call that fully automated driving requires a high level of security in all kinds of complex situations. "Regarding Mobileye's reputation in the entire industry, we believe it is no longer appropriate to cooperate with Tesla in this field." Therefore, some analysts pointed out that this automatic driving accident was the direct cause of the breakup between Mobileye and Tesla.

Shashua said to the analyst in the conference call: "I think in the process of cooperation, we need to clearly understand how to use this technology correctly in all aspects, instead of simply providing technical support or using it without control." Shashua also hinted that the worry about the security of Mobileye technology is completely unnecessary. Obviously, Shashua mentioned that Tesla’s autopilot was involved in a fatal accident in May of this year.

Mobileye stated in a statement: "The cooperation between Mobileye and Tesla will not be extended to new products after the EyeQ3 driver assistance system. We will continue to support and maintain Tesla's current Autopilot product plan, including safety aspects. Several features were upgraded, but hardware upgrades were not included.” But Mobileye did not disclose when the current contract with Tesla was over.

Tesla CEO Elon Musk also responded to the matter. In an e-mail, he said that the termination of the cooperation will not affect Tesla's progress in the field of fully automated driving.

Some analysts asked Shashua who Mobileye and Tesla first proposed to end cooperation. He declined to elaborate on this, but reiterated that Mobileye decided not to continue cooperation. Mobileye also stated that in its overall revenue, Tesla’s business revenue does not account for a large proportion.

Mobileye reported the second quarter of 2016 (as of June 30) 2016 earnings before the US stock market on the 26th: Revenue increased 58.1% year-on-year to US$83.5 million; non-GAAP diluted per share The surplus was reported at US$0.17, higher than US$0.10 a year ago. Mobileye said that shipments of EyeQ chips in the second quarter increased 45.4% to 1.409 million units with an average price of US$44.5, which was higher than US$43.7 a year ago. Some analysts estimate that Tesla’s contribution to Mobileye's revenue is only 1%.

Shashua said that to achieve true automation means to go beyond "typical supply relationships", that is, customers should not just buy support and services, but rather require automakers to establish a true partnership with technology companies like Mobileye. .

In early July of this year, Mobileye announced that it will cooperate with BMW and Intel and plans to achieve mass production of highly automated vehicles and fully automated vehicles by 2021. In addition, Mobileye's customers include Volkswagen, Nissan, GM and Ford. Mobileye will release a new generation of Advanced Driver Assistance System (ADAS) EyeQ4 in 2018. Mobileye stated that the company will focus on developing a fully automated driving system in the future.

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