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Mobileye's Technology Not Suited For Autonomous Driving

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Mobileye's Technology Not Suited For Autonomous Driving

Trip Chowdhry of Global Equities Research trashed Mobileye NV (NYSE: MBLY)'s business last week and even suggested the stock is "hyper-inflated" and worth just $10 a share.

On Tuesday, the analyst followed up with a new report that mostly covered an autonomous driving focused conference.

For starters, a successful autonomous driving vehicle needs to be equipped with technology that offers a location accuracy of 1 to 1.5 cm. Mobileye doesn't offer any sort of technology that fulfills this requirement, the analyst argued.

Related Link: Mobileye Is A $10 Stock That's 'Hyper-Inflated', Could Collapse In 6 Months: Chowdhry

Chwodhry added that Mobileye's cameras keep a car in a lane, but this is "not sufficient."

"Spatial resolution allowing centimeter level accuracy is essential," Chowdhry wrote.

Chowdhry continued that Mobiley's object detection technology is "okay"; it "works well" in ideal weather conditions but is "not immune to unpredictive lighting."

The analyst went on to suggest that Mobileye most likely using Nikon's method of finding Depth-of-Field in its camera technology which is "very rudimentary," especially compared to LiDAR (Light Detection And Ranging) which is a process used by Tesla Motors Inc (NASDAQ: TSLA) and could be installed in Tesla's cars within 18 to 20 months from now.

LiDAR is "fast, immune to unpredictable lightings, has maximum horizontal field of view and gives 1 to 1.5 cm of location accuracy, which is essential for Autonomous driving," Chowdhry wrote.

Finally, Chowdhry suggested that the cost to Tesla for LiDAR could be "very affordable" at less than $100.

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Latest Ratings for MBLY

DateFirmActionFromTo
Apr 2017DowngradesOutperformNeutral
Mar 2017DowngradesOverweightNeutral
Mar 2017DowngradesBuyNeutral

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