GM et al need Mobileye. Tesla doesn’t.

Tesla can detach from Mobileye and in-source its machine vision technology? That’s great. But this doesn’t mean any normal automaker can follow suit. In this “race to autonomy,” Tesla is a Usain Bolt. It’s a Silicon Valley company from birth, genetically suited for this type of race. Everyone else has love handles and a bum hip. They’re all forced to piggy-back on a Mobileye in a desperate bid to stay in the race, never mind win it. For this dependency to change, they would have to:

  1. Put together an FI pit crew on the sidelines.
  2. Suddenly jump off Mobileye at the right moment and head to the pit for a shot of Red Bull, a quick hydrocortisone shot and a heart transplant.
  3. Re-enter the race and hope to God that everything works.

This latest divorce shocker just underlines the very large gap between Tesla and everyone else in the auto racket. Mobileye shares will recover within a week as people remember the increasingly vital role Mobileye will play in this race.

TeslaMondo owns shares of MBLY.


2 thoughts on “GM et al need Mobileye. Tesla doesn’t.

  1. purrpullberra says:

    The recent hires of silicon chip designers seems to have forecast this move. At first I thought it was an angry rejection of Tesla due to some perceived slight of Mobileye over the recent AP scandal. Then Elon’s comment almost sounded a bit jilted. But in the light of day after thinking on it all it seems truly inevitable and a sign that Tesla is moving faster than even a leader like Mobileye is willing to sustain.
    Mobileye has a nice duo they’ve partnered with, Intel and BMW, so they must be flush with cash (sarcasm) and ready to move as fast as 30% of Tesla’s speed. Best of luck to them. Someone needs to help the old guard. Tesla’s going in-house, for the win. Again.




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