For any of you watching the self driving car sector with an interest in MobilEye or Tesla (who are making a bid for SolarCity), the Tesla crash that happened back in May is now being investigated by US authorities. The market might mark Tesla and Mobileye down on opening (it is down 3% in after hours trading).
FWIW - I sold a tranche of my Mobileye yesterday on its Intel/BMW/Mobileye non-news news above 37. I might buy back if it falls back but manages to stay above 40. The 50 day EMA (39.32) is closing in on the 200 day EMA (38.51), which would be nice to see it cross!
Tesla and MobilEye are up so I guess the market agrees the crash is not an issue for the company. “Tesla’s Auto-Pilot is still years ahead of the rest; though a sad event, but from [a] stock perspective, a non-event,” said Global Equities Research’s Trip Chowdhry.
Chowdhry demonstrated Tesla’s success by citing statistics backing the company as the clear front runner in automated driving. “Tesla has accumulated more at 100 million miles on Auto-Pilot, and is now doing 1.0 million miles every 10 hours” stated the analyst. That’s an order of magnitude over 66 times that of Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)'s driverless cars.
I think they will always have the numbers to protect themselves against these kind of events. IE. The autopilot cars even in prototype development have less crashes than the people driving the cars.
FWIW - I sold a tranche of my Mobileye yesterday on its Intel/BMW/Mobileye non-news news above 37. I might buy back if it falls back but manages to stay above 40. The 50 day EMA (39.32) is closing in on the 200 day EMA (38.51), which would be nice to see it cross!
First I hope you meant you sold at $47, not $37
Can’t fault you from taking some profits on the big bounce, the gaps often close. That said, the chart looks good. Above the 50/200dma and it did just bounce off the 200 right before the news. The news day was up on huge volume and only faded a bit from the high, then the next day was still on very strong volume, so the big boys like the news and are accumulating the stock. That also is a break out from a base, so good reasons to keep holding some (or even to buy).
IBD has it rated a bit weak, with a composite of only 92, 0 consecutive quarters of increasing fund ownership, and in a group that overall shows poor accumulation. But EPS rating is 99 and SMR gets an “A”, so strong by those measures.
But I have been long a while and will continue to hold for it great future potential - but it is probably doomed to be acquired.
FWIW in case anyone was interested, I bought my trading stake back in MobilEye today at 44.56 having sold at 47.70. Apart from clearing a nice profit, it appears the Tesla crash risk has not proven material to the MobilEye stock, the Intel and BMW alliance news seems to have been considered a game changer and the stock has cleared more than 3 trading days above its 200 day moving average with the 50 looking to cross above the 200 right about now.
