Mobileye NV (MBLY) Stock Soars on Autonomous Vehicle Test

Advertisement

Mobileye NV (NYSE:MBLY) is continuing its trend higher Wednesday morning, tacking on another 3% for a total of over 20% gained in the past five trading days. Wednesday’s move comes on news that BMW (OTCMKTS:BMWYY), working with Intel Corporation (NASDAQ:INTC) and Mobileye, will hit the streets with approximately 40 self-driving test vehicles in the back-end of 2017.

MBLY Stock: Mobileye NV (MBLY) Stock Soars on Autonomous Vehicles

The team-up, announced last July, aspires to have autonomous cars on the road by 2021, and will feature technology from both INTC and MBLY.

BMW’s vehicles will deploy in urban areas in both the U.S. and across Europe, with the goal of data mining for the car that will become the new flagship of BMW — the iNext. According to BMW’s head of development, Klaus Froehlich:

“This year our fleet of vehicles will already test this joint technology globally under real traffic conditions. This is a significant step towards the introduction of the BMW iNEXT in 2021, which will be the BMW Group’s first fully autonomous vehicle,”

What This Means for MBLY Stock

The recent moves are intended to ward off competition from Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) and Tesla Motors Inc (NASDAQ:TSLA), as Mobileye’s co-founder and CTO, Amnon Shashua, understands the importance of the first-mover’s advantage:

“Those who reach the finish line before you will have their tech become the basis of standardization. This is why sharing is important.”

Sharing, indeed. The companies plan to provide an open platform for its autonomous tech, allowing other automakers, ride-sharing companies and individual car owners to buy sensors and effectively crowd-source data.

Through the collaboration, BMW hopes to achieve “level three” of self-driving tech — eyes off. That level would be followed by “mind off” and, finally, “driver off,” allowing the car to travel sans human. That final level is crucial to the advancement of ride-sharing and toward transferring society to a model of sharing over private ownership.fr

“At the beginning, I think only premium cars will be able to afford such technology — huge numbers of sensors in the car — so I think we will be the drivers anyway,” said Froehlich. “If everybody would use the same network, it will be best.”

That network, of course, will be a huge driver for MBLY stock.

As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.

More From InvestorPlace


Article printed from InvestorPlace Media, https://investorplace.com/2017/01/mobileye-nv-mbly-stock-amd/.

©2024 InvestorPlace Media, LLC