Mobileye Shares Plummet As Company Says Partnership With Tesla Will Not Continue

Shares of Mobileye plummeted 19% in pre-market trade Tuesday after the company said its partnership with Tesla Motors would not continue. Tesla cars had used Mobileye driver-assistance technology as part of the autopilot feature. Mobileye said it would be shifting to working on fully autonomous vehicle technology and had partnered with BMW and Intel . "Moving forward to more advanced autonomy is a paradigm shift both in terms of function complexity and the need to ensure an extremely high level of safety," Amnon Shashua, chief technology officer of Mobileye, said on the earnings call. The company will continue to "support and maintain" the Tesla autopilot products and will update several functions. Mobileye had beaten earnings and revenue expectations earlier Tuesday, and shares had risen 5.5%.