Is The Selloff In Mobileye Overdone?

Mobileye NV (NYSE: MBLY)'s stock plunged more than 13 percent Tuesday morning after the company said its partnership with Tesla Motors Inc (NASDAQ: TSLA) will not be extended. The Israel-based developer of advanced driver assistance systems and autonomous driving technologies, supplied Tesla with a processor for use in its cars called the EyeQ3.

Mobileye's stock was hard hit following the conference call. The company reported its Q2 earnings in which it earned $0.17 per share on revenue of $83.5 million - exceeding Wall Street's expectations of $0.15 per share on revenue of $77.3 million.

John Rosevear, a senior analyst with The Motley Fool, Tweeted that Tesla represents just 1 percent of Mobileye's total sales. He added that Mobileye's CEO, Ziv Aviram, couldn't confirm the figure, but it's close.

Related Link: Mobileye Tanks After Partnership With Tesla Ends

Mobileye's Deep Portfolio Of Clients And Partners

Mobileye entered into an agreement with BMW and Intel Corporation (NASDAQ: INTC) to jointly cooperate and develop driver-less car technologies.

Analysts at CLSA speculated that the agreement would mark the automotive industry's "first-ever production commitment towards driverless shared mobility." The analyst maintained a Buy rating on Mobileye's stock with a $58 price target.

Here are some of the more notable headlines which support the thesis that Mobileye's portfolio extends beyond Tesla:

• Volkswagen names Mobileye a critical supplier for its 'Future Automotive Supply Tracks (FAST)' initiative.
• Nissan Motor's new ProPILOT semi-autonomous highway driving feature for its Serena minivan uses Mobileye's technology.
• Analysts at Piper Jaffray say Mobileye is their favorite "car-of-the-future" stock pick.
• Analysts at Citi stated that Mobileye has the potential "gradually position itself as the core operating system for autonomous vehicles."