Tesla And Mobileye End Partnership

Posted: Jul 27 2016, 7:30am CDT | by , in News | Cars & Vehicles

Tesla and Mobileye End Partnership
Credit: Getty Images

Tesla and Mobileye’s strategic partnership comes to an end.

Tesla which is one of the major companies to supply electric cars all over the world have started producing autonomous cars as well. Despite the fatal incident of auto-drive mode of a Tesla Model S car, the company is getting steady profit from the autonomous domain as well.

A company with bigger agendas needs to partner up with smaller companies in order to make the things run smoothly. The company needed digital and software making companies to work with the vehicles they are making.

Tesla had partnered up with an Israeli company Mobileye in order to have the software and IT development met for the projects. However this partnership has ended now as Tesla said that the autonomous cars require more concentration and time then Mobileye can deliver.

Mobileye on the other hand which is a huge company of Silicon Valley has said that the partnership has ended due to disagreements between two companies. Mobileye has been providing the self-driving chip to Tesla’s cars up till now.

The current contract between the two companies is known as EyeQ3 and it will not be extended, according to WSJ. Tesla has been using these chips in self-driving cars from the year 2014. According to Mobileye, there will be no new EyeQ4 project.

Mobileye however will continue to update the EyeQ3 mechanism for Tesla. The company would cooperate with any updates, any bug fixing or any other maintenance handling for the project. This facility has the ability to avoid crass, optimize auto-steering and other basic functions without needing any big update of software.

However according to Tesla’s CEO Elon Musk, the ending of contract happened as Mobileye is all set to work with Intel and BMW for autonomous cars. Tesla has also said that the end to this partnership will not affect the company in any material way.

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