Tesla, Say Goodbye To Mobileye

(RTTNews) - Mobileye (MBLY), a self-driving car technology company, Tuesday announced that it is ending its partnership with electric car marker Tesla Motors Inc. (TSLA) for the development of auto pilot program. Shares of Mobileye plunged about 8 after the news.

Mobileye announced the decision to part ways with Tesla during its second-quarter earnings call. Both the companies did not disclose the reason behind the decision to end their partnership, but market experts suggests that it might be due to the fatal accident of a Model S while testing the autopilot program few weeks ago.

Although, Tesla's autopilot system is designed by the automaker itself, the company uses the EyeQ3 technology provided by Mobileye. Mobileye's technology is used by major automakers, including Audi, BMW, General Motors, and Ford.