Mobileye NV Gains: Tesla Motors Inc To Use Multiple Suppliers For Self-Driving Car

Mobileye NV MBLY gained more than 6 percent Monday on news that Tesla Motors plans to develop its own self-driving system with part of the technology to be rolled out in three years. Tesla Motors Inc's TSLA Chief Executive Elon Musk told the Japanese newspaper Nikkei Asian Review that while the overall system and software will be programmed by Tesla, "we will certainly use sensors and subcomponents from many companies." Israeli-based Mobileye makes camera-based "driver assistance" systems and last month raised $890 million in its initial public offering on the New York Stock Exchange. Tesla will include elements of a self-driving system in an auto to be launched in three years, Musk said, with a fully self-driving Tesla car available "probably, in the five- or six-year time frame." Shares of Mobileye have had a strong September so far, getting the month kicked off last week with a bullish research note from Morgan Stanley. Morgan's Ravi Shanker set a $100 bull-case price target on Mobileye shares. The stock is up nearly 24 percent since the note was issued. Mobileye shares were up 6.56 percent recently at $53.25 a share.