Mobileye NV (MBLY) Hits Highest Level Since IPO Amid Tesla ‘D’ Speculation

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Mobileye NV (MBLY) Hits Highest Level Since IPO Amid Tesla ‘D’ Speculation
Mobileye NV MBLY

Shares in Mobileye NV (NYSE:MBLY) soared to their highest level since its IPO two months ago, due to an indication from Tesla Motors Inc (NAASDAQ:TSLA) that it would be releasing a new car that uses Mobileye technology.

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Tesla CEO Elon Musk tweeted on October 1 that it was “about time to unveil the D and something else”, along with a photo of a car protruding from behind a garage door. Tesla is an important client of Mobileye and any new release is expected to make use of Mobileye technology.

Mobileye NV (NYSE:MBLY) – Impending news

Speculation is rife that the Model D, or an updated Model S, will be presented at a Tesla event planned for October 9. Sources have claimed that Tesla will make its first attempt at introducing automated driving, and Global Equities Research analyst Trip Chowdhry has predicted that Jerusalem-based Mobileye’s anti-collision technology will be a part of it.

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“Mobileye possesses the world’s leading technology that protects from collision, and it looks like this collision avoidance system will be in Tesla’s new model S,” said Chowdhry, who carries out research on more than 30 Tesla suppliers. “There is a lot of hype around Tesla ahead of next week’s presentation, and this is creating an upside for Mobileye.”

Mobileye NV (NYSE:MBLY) – Outstanding growth

Mobileye shares jumped to $57.70, recording the largest weekly gain of the most-traded Israeli companies in the U.S., according to the Bloomberg index. The weekly gain of 1.9% was its biggest gain since August. Tesla shares rose 3.5% to $255.21.

Since its trading debut on August 1, Mobileye stocks have more than doubled in price. Goldman Sachs Group Inc. is a major shareholder, and will be pleased to have seen the value of Mobileye grow from $1.5 billion in July 2013, to $12.2 billion today.

The $1 billion Mobileye IPO was the biggest in the U.S. by an Israeli company, whose other clients include General Motors Co. and Bayerische Motoren Werke AG. Clients are beginning to incorporate a system that alerts drivers to pedestrians and unintended lane departures.

The company predicts that its technology will enable hands-free driving by 2016. Mobileye systems are unique in the fact that they only use one camera to record and display the surroundings of the vehicle.

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While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. <i>To contact Brendan or give him an exclusive, please contact him at theflask@gmail.com</i>
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