Tesla Motors Inc Quit Using Mobileye’s Chips In Wake Of A Fatal Crash

Tesla Inc stock flies on china deal Model X Falcon Wing Doors

Tesla Motors Inc will likely work on its own image-recognition technology as it has parted ways with Mobileye after the fatal accident – involving its semi-autonomous tech – sparked enquiries from federal agencies. Mobileye is the startup that supplies chips, which allows Tesla cars to recognize images and work with Tesla’s Autopilot system.

Tesla Motors Inc (NASDAQ:TSLA) Autopilot
Source: Tesla Motors Inc

Tesla, Mobileye part ways

During a call discussing the Q2 results, Mobileye CTO – Ammon Sashua – made the announcement of the end of its alliance with Tesla. In a statement, the firm said “We continue to support and maintain the current Tesla Autopilot product plans. This includes a significant upgrade of several functions that affect both the ability to respond to crash avoidance and to optimize auto-steering in the near term, without any hardware updates.”

Further, the statement says that moving towards more advanced autonomy is a paradigm shift in their view, both in need to ensure an extremely high-level of safety and in terms of function complexity. Further, the firm said there is much at stake for the reputation of Mobileye and to the industry at large. And, achieving the objective requires partnerships that go beyond the typical OEM / supplier relationship, like their recent collaboration with Intel and BMW.

Why ended the alliance?

When the CTO was asked why the two parted ways, Sashua directed to companies’ respective responses to the fatal crash. Mobileye’s tech is only capable of assisting in avoiding accidents with cars in front of it, and not trucks that cross the highway laterally, like the case was with the crash. “This incident involved a laterally crossing vehicle, which current-generation AEB systems are not designed to actuate upon,” the firm noted.

As per Tesla Motors Inc electric car maker, the autopilot system, which combines third-party technology and proprietary, is supposed to be able to recognize any interruption of the ground plane in the path of the car, but the high, white side of the box truck, combined with a radar signature, which would have looked very similar to an overhead sign, caused automatic braking not to fire.

Mobileye – no fit for Tesla

It is not certain which party ended the relationship, but as per Comma.ai CEO George Hotz, “Without a doubt it’s Tesla who parted ways.” Comma.ai is actually the firm that was challenged by Tesla CEO Elon Musk to build better software than Mobileye. Hotz previously said that Mobileye is not innovative enough for Tesla Motors Inc .

Mobileye system is so easy to reproduce that any company does not need the best talent, Hotz said adding he did it in a couple of months. “Our software can already do more than Mobileye’s,” said Hotz.

At 10.00 am EDT, Tesla shares were up 1.29% at $232 . Year to date, the stock is down over 2% while in the last one-ear, it is down over 8%.

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.

Adam Green is an experienced writer and fintech enthusiast. He he worked with LearnBonds.com since 2019 and covers a range of areas including: personal finance, savings, bonds and taxes.


Leading Social Trading Platform with 0% Commission

Leading Social Trading Platform with 0% Commission

Leading Social Trading Platform with 0% Commission


75% of investors lose money when trading CFDs.

Leading Social Trading Platform with 0% Commission

75% of investors lose money when trading CFDs.

HTML Snippets Powered By : XYZScripts.com