Mobileye's Technology Not Suited For Autonomous Driving

Trip Chowdhry of Global Equities Research trashed Mobileye NV MBLY's business last week and even suggested the stock is "hyper-inflated" and worth just $10 a share.

On Tuesday, the analyst followed up with a new report that mostly covered an autonomous driving focused conference.

For starters, a successful autonomous driving vehicle needs to be equipped with technology that offers a location accuracy of 1 to 1.5 cm. Mobileye doesn't offer any sort of technology that fulfills this requirement, the analyst argued.

Related Link: Mobileye Is A $10 Stock That's 'Hyper-Inflated', Could Collapse In 6 Months: Chowdhry

Chwodhry added that Mobileye's cameras keeps a car in a lane but this is "not sufficient."

"Spatial resolution allowing centimeter level accuracy is essential," Chowdhry wrote.

Chowdhry continued that Mobiley's object detection technology is "okay"; it "works well" in ideal weather conditions but is "not immune to unpredictive lighting."

The analyst went on to suggest that Mobileye most likely using Nikon's method of finding Depth-of-Field in its camera technology which is "very rudimentary," especially compared to LiDAR (Light Detection And Ranging) which is a process used by Tesla Motors Inc TSLA and could be installed in Tesla's cars within 18 to 20 months from now.

LiDAR is "fast, immune to unpredictable lightnings, has maximum horizontal field of view and gives 1 to 1.5 cm of location accuracy, which is essential for Autonomous driving," Chowdhry wrote.

Finally, Chowdhry suggested that the cost to Tesla for LiDAR could be "very affordable" at less than $100.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!