Mobileye NV Surges On Tesla Motors Inc ‘D’ News

Updated on

The stock price of Mobileye NV (NYSE:MBLY) surged almost 8% to $59.39 per share after as investors speculate on the upcoming “D” announcement of Tesla Motors Inc. (NASDAQ:TSLA).

Tesla CEO Elon Musk tweeted that the electric car manufacturer would unveil the “D and something else” on October 9.

Some investors speculated that Tesla Motors Inc (NASDAQ:TSLA) would introduce a new model while others suggested that the “D” stands for “driver assistance.”

Is Mobileye NV working with Tesla on driver assistance feature?

Mobileye NV (NYSE:MBLY) is a designer and developer of software and related technologies for camera-based driver assistance systems (ADAS). There is a potential that it may become a partner or supplier of equipment for Tesla Motors Inc (NASDAQ:TSLA) if it would build a new version of the Model S with driver assistance features.

There had been speculations that Mobileye NV (NYSE:MBLY) and Tesla Motors Inc (NASDAQ:TSLA) have been working together on developing a driver-less technology.

Mobileye NV (NYSE:MBLY) would benefit and trade even higher if Tesla Motors Inc (NASDAQ:TSLA) officially confirms a partnership involving the speculated driver assistance feature.

Mobileye NV could reach $100 a share

Wall Street analysts have a consensus rating of Buy for the shares of Mobileye NV (NYSE:MBLY). Last month, their 12-month average price target for the stock was $45.44 per share.

Mobileye NV (NYSE:MBLY) already surpassed their price target given its current trading price of more than $59 per share.

Last month, Morgan Stanley analyst Ravi Shanker initiated coverage on the shares of Mobileye NV (NYSE:MBLY) and suggested that its stock price could reach as much as $100 per share on a bull-case scenario.

According to him, an expansion in China could help Mobileye NV (NYSE:MBLY) reach the $100 target price.

Financial performance

Mobileye NV (NYSE:MBLY) reported that its revenue increase 91% to $33.7 million for the second-quarter ended June 30, 2014. The company said its non- GAAP net income was $11.5 million or $0.05 per share.

Ziv Aviram, CEO of Mobileye NV said, “The second quarter results highlight the strength of our unique business model.  Our strong revenue growth was driven by continued robust market demand resulting from the ongoing move toward regulating ADAS as well as the value proposition of our innovative solution.”

Leave a Comment