Over the weekend, Tesla Motors Inc TSLA 0.46% announced on its blog that it will be making a major strategy shift in its autopilot technology. Tesla has been adding radar hardware to all of its vehicles since late 2014 to be used as a supplementary sensor to the camera and image processing system.
“After careful consideration, we now believe it can be used as a primary sensor without requiring the camera to confirm visual image recognition,” the Tesla team wrote on Sunday.
While this decision to switch from cameras to radar may not move the needle much for Tesla shareholders, Global Equities Research analyst Trip Chowdhry believes it could be devastating for Mobileye NV MBLY 2.65% investors. Chowdhry believes Tesla’s competitors will follow suit on the transition from video to radar, and Mobileye will be left in the dark.
“It is very critical for MBLY investors to protect downside on MBLY stock,” Chowdhry urged. “MBLY stock will very likely collapse within 6 to 8 months from now.”
Chowdhry is now expecting an “almost” fully autonomous vehicle from Tesla within 20 months.
Tesla is anticipating Model 3 shipments will begin in late 2017. The stock has severely lagged…
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