Chowdhry's Advantage 'Not Durable'

"Mobileye's first mover advantage is not durable," the analyst wrote. "Competition from Autoliv, Nextchip and Continental is going to make new design wins difficult for Mobileye."

Chowdhry added that the auto industry has almost decided that Sensor Fusion represents the future of the autonomous driving space and cameras merely play a secondary role.

Chowdhry also suggested that in March of next year, Tesla Motors Inc (NASDAQ: TSLA) is likely to show off its vastly improved self-driving and safety features in its Model S and Model X vehicles with its Sensor Suite and new software upgrade.

Accordingly, Mobileye's business is "probably okay" for the next four to six months, but after that, the company could collapse.

Finally, the analyst suggested that a fair value for Mobileye is an enterprise value of between $500 million to $1.0 billion.