Mobileye’s Anti-Collision Technology can become Part of Tesla’s New Product
Mobileye, a Jerusalem-based maker of automated-driving technology, witnessed 13% rise in its stock price, during the last week.
The significant rise was recorded in the last two trading days after Tesla Chief Executive Officer Elon Musk on October 1 said on Twitter that it was "about time to unveil the D and something else". The tweet came along with a photo of a car that was peeking from behind a garage door and had a D marked on it.
Analysts said that Tesla Chief's post strengthened the speculations that Musk would present a new vehicle to follow his Model S luxury sedan at an October 9 event.
On the other hand, sources have reported that the company is all set to enter automated driving sector. It also said that the company's new car will have high-tech features so that it could compete with other cars in the segment.
Trip Chowdhry, an analyst at Global Equities Research, said it is possible that Mobileye's anti-collision technology may become part of Tesla's new product.
Chowdhry said, "Mobileye possesses world's leading technology that protects from collision, and it looks like this collision avoidance system will be in Tesla's new model S. There is lot hype around Tesla ahead next week's presentation this is creating an upside for Mobileye".
Mobileye shares increased to $57.70, posting the biggest weekly gain in the Bloomberg index of the most traded Israeli companies in the US.
This week, shares of the company raised by 1.9%, marking the biggest gain since August. Whereas, shares of Tesla based in Palo Alto, California, rose 3.5% to $255.21.
The TA-25 Index that lost almost 0.3% in the last week has gained 1.2% to 1,468.28 in this week.
Ravi Shanker, an analyst at Morgan Stanley, predicted in August report that Mobileye's shares could reach $100. He repeated the similar prediction the last month, saying that the company might get tough competition by the rivals.
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