Mobileye jumps on deal with carmakers for driverless data

Mobileye NV, the Jerusalem-based maker of
chips and software for driverless cars,
jumped the most in six months after
announcing a strategic partnership with
HERE, the mapping consortium forged by
German automakers.

Shares of Mobileye rose 9.8 percent to $38.44
in New York, the most since June 30. The
stock is still down 9.1 percent this year.

Automakers and technology companies are
rushing to form partnerships to compete in
self-driving technology with Alphabet Inc.’s
Google, which has already clocked 2 million
miles of public road tests. BMW AG, Audi AG
and Daimler AG agreed to buy Nokia Oyj’s
digital-map unit in August 2015 to gain
technology for connected cars. Under the
strategic partnership announced Thursday,
Mobileye’s technology, which uses sensors
and data analysis to localize a car’s position
on the road in real time, will be integrated
into HERE’s navigational-mapping
technology, the companies said in a

“This validates our view that ‘map
companies’ are partners/customers of
Mobileye, not competitors,” David Leiker, an
analyst at Robert W. Baird & Co. in
Milwaukee, said in a research note. The
announcement reinforces Mobileye’s
“substantial and expanding moat in
autonomous driving.”

While Mobileye is a favorite on Wall Street
— 18 out 23 analysts covering the the stock
rate it a buy — the shares have tumbled this
year amid concern the company will face
tougher competition. Mobileye has 65
percent of the market for advanced driver-
assistance systems, according to Baird. A
public spat with Tesla Motors Inc. earlier this
year and attacks from short-seller Citron
Research have also weighed on the shares. 

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