Mobileye Signals End of Work on Tesla’s Self-Driving System

Mobileye NV, the Jerusalem-based maker of computer chips and software used to manage autonomous driving systems, says its work with Tesla Motors Inc. won’t continue beyond Tesla’s controversial Autopilot feature.

Neither company has said when their relationship will end. Mobileye co-founder and Chief Technology Officer Amnon Shashua tells investors, “there’s much at stake here, to Mobileye’s reputation and to the industry at large.’ He adds that the company thinks “it’s not in the interest of Mobileye to continue with Tesla in that area.”

Shashua is referring to publicity about crashes involving Tesla’s Autopilot system, including one fatality. Many observers blame drivers for relying on the technology under conditions beyond its ability to handle. Analysts say strain over those incidents caused the riff.

Tesla CEO Elon Musk claims Mobileye’s work with other carmakers and its need to support its multiple “legacy” driving-aid systems has hampered the company’s ability to advance its own technology. Mobileye is working with more than 20 carmakers on automatic driving features.

Tesla uses Mobileye’s EyeQ3 system. Mobileye has since announced a more advanced EyeQ4 system and expects to deploy a fully autonomous control unit for BMW AG by about 2021.

The partners insist the end of their relationship will have no impact on either company. Analysts note that Tesla represents less than 1% of Mobileye’s chip sales.

 Mobileye disclosed the pending separation while reporting its second-quarter revenue surged 58% to $84 million, and net income jumped 76% to $27 million.