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Elon Musk has big plans for “Tesla Motors,” the automobile company that he is the CEO of. However, it seems that things are always getting in the way, such as the fatal crash that highlighted flaws in the carmaker’s Autopilot feature. On top of the international fervor that the incident caused, now “Tesla” has to contend with the loss of “Mobileye;” a partner that was supposed to help make automated driving possible for the electric car company.
As CNET notes, “Mobileye” leaving “Tesla” came after the two companies had a disagreement regarding the fatal accident involving an owner of a “Model S” that crashed into a truck. According to investigations, the owner was watching a movie when the accident happened, which is something that “Tesla” does not advise people should do when the Autopilot is on. In any case, “Mobileye” had a problem with the carmaker after that, which prompted its decision to break away from “Tesla.”
In response to its decision, investors were outraged, which then led to “Mobileye’s” stocks to plummet. According to Bloomberg, the company’s shares nosedived by 8.1 percent on Tuesday, putting the price at $45.33.
During a quarterly conference call, Mobileye Chief Technology Officer Amnon Shashua commented on how the company’s focus should be directed at ensuring the safety of drivers. This, he explains, is why they had to part ways with Musk’s company.
“There is much at stake here, to Mobileye’s reputation and to the industry at large,” Shashua explained. “We think that that’s not in the interest of Mobileye to continue with Tesla in that area.”
As far as the financial impact that the move would have on the company, Shashua also stressed that “Tesla” was not “material” to the success of the camera provider.
In response, Musk wrote in an e-mail that “Mobileye” was an inefficient service provider who was being dragged down by its products from previous generations, the Los Angeles Times reports. Apparently, he wasn’t surprised by the move.
“This was expected,” Musk said.
