Investor Gary Black addressed a common misconception among Tesla Inc. (NASDAQ:TSLA) enthusiasts regarding Mobileye Global Inc. (NASDAQ:MBLY) and its lidar technology. On Tuesday, Black posted that Mobileye is not discontinuing lidar use but opting to source it externally.
What Happened: Black emphasized that Mobileye will purchase lidar units from third-party vendors instead of developing them in-house. He urged readers to understand the full context before jumping to conclusions.
“Once again, some Tesla bulls misreading the headlines,” he wrote.
Israel-based Mobileye, which is owned by Intel, and Tesla were partners in developing Elon Musk-led EV giant’s Autopilot autonomous-driving device. However, the partnership ended in 2016 when Mobileye turned to BMW to develop the latter’s self-driving vehicles.
Black’s post was in response to a post by investor Sawyer Merritt, who reported that Mobileye is ending its lidar development and laying off about 100 employees.
Why It Matters: The clarification from Black comes amid reports that Intel Corp (NASDAQ:INTC) is considering a strategic stake sale in Mobileye, which has impacted the stock’s performance. Mobileye’s decision to source lidar externally could be a strategic move to cut costs and focus on other technological advancements.
Mobileye recently reported a 3% revenue decline in the second quarter of 2024 but managed to beat analyst expectations. The company faces challenges in the second half of the year, as highlighted by its CEO.
Price Action: Mobileye was trading 0.90% higher during Tuesday’s pre-market after closing 3.46% lower on Monday, according to Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
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