CARMAKING in Israel has amounted to some unstylish models in the latter half of the last century and a few rugged off-roaders for the country’s security forces. A reluctance to make them, however, has not stopped Israel from becoming a thriving centre for the high-tech kit with which cars now bristle, and also for services such as ride-hailing.
US chipmaker Intel is taking a big bet on driverless cars with a $15.3bn (£12.5bn) takeover of specialist Mobileye. Intel will pay $63.54 a share in cash for the Israeli company, which develops “autonomous driving” systems.
Mobileye (NYSE:MBLY) has shrugged off all valuation-based criticism and has continued moving higher. The stock has inched higher on the back of several positive catalysts. The company is well positioned to benefit from the autonomous car market and has taken several steps in the right direction as mentioned below.
On an earnings call today, Mobileye announced that it will not be providing any more computer vision or sensing products to Tesla.
This ends what had been perhaps the most prominent manufacturer-supplier relationship in the autonomous vehicle world.