Mobileye NV (NYSE:MBLY) experienced a whopping 13% surge in its stock value on 3rd October, 2014, and the reason being cited is a tweet sent by Elon Musk, Tesla Motors Inc (NASDAQ:TSLA)’s CEO on 1st October, 2014, stating –
“About time to unveil the D and something else,”
‘D’’s identity is yet to be known but what is very much likely is that it is going to be equipped with Mobileye NV (NYSE:MBLY)’s ground breaking technology just like its predecessor, Model S. In the words of analyst Trip Chowdhry, Global Equities Research –
“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. There is a lot of hype around Tesla ahead of next week’s presentation, and this is creating an upside for Mobileye.”
Jerusalem-based Mobileye NV (NYSE:MBLY) which was established in 1999 by two professors teaching at Hebrew University, specializes in creating technology aimed towards rendering vehicles adapted to modern-day driving conditions as also safe for the driver. The ultimate objective for the company is to enable hands-free highway driving by the year 2016 and it enjoys a sizeable edge over competition courtesy of its image sensing technology.
Tesla Motors Inc (NASDAQ:TSLA) has incorporated many technology-based features in its electric sedan Model S and is likely to follow the same path for ‘D’ too. Whether it stands for drop-top or delivery truck is something that remains to be seen, the only certainty being that it surely does not stand for diesel. As per Theo O’Neill, an analyst with Ascendiant Capital Markets –
“The D stands for drop top. It’s a convertible.”
He justified his stand by stating that Tesla Motors Inc (NASDAQ:TSLA)’s latest offering Model S had been recently customized as a convertible by a Huntington based company named Newport Convertible Engineering. However, a senior analyst Karl Brauer who works for Kelly Blue Book offered the following opinion –
“Could it stand for delivery? I think it could be a small pickup or delivery truck. Elon mentioned a truck several months ago, and a lot of people blew that off. But the truck market is very dynamic right now; volumes are high, and there are a lot of new models on the market. If you are a small business and you deliver pizzas or flowers, it would be great to be able to do it on electricity.”
Bearing these facts in mind, Morgan Stanley’s analyst Ravi Shanker repeated in September, 2014, what he had said in August – that in the auto sector, Mobileye NV (NYSE:MBLY) is one of the few which is sure to touch the $100 mark in terms of share-value. This would be possible if it is able to add another 200 car models to the existing 3.3 million including Tesla Motors Inc (NASDAQ:TSLA) wherein its technology stands installed and is in use.