In its quarterly earnings call, self-driving car technology supplier Mobileye revealed that it will not be extending its partnership with electric car manufacturer Tesla Motors beyond the EyeQ3.

The EyeQ3 is the processor used by Tesla Motors in current vehicles, namely the Model S and Model X, for image analysis intelligence, which enables the controversial Autopilot feature of the company.

Amnon Shashua, the CTO of Mobileye, said that the company will continue working with Tesla Motors in the improvement of the performance of EyeQ3. However, to achieve true autonomy, the company said that it will need to go beyond the typical supplier relationships wherein clients simply purchase components and services.

Mobileye thinks that the future of the development of self-driving cars will require automobile manufacturers and technology companies such as itself to work together in a true partnership.

The separation between the companies, however, is believed to be the result of the car crash that involved a Tesla Model S while it was in Autopilot. Reports revealed that the electric car's self-driving technology was not able to detect a cutting tractor trailer due to the white color of its side, and the resulting impact led to the driver's death.

According to Mobileye, its system was not designed to be capable of always detecting vehicles cutting in front of the car where it is installed. However, the EyeQ4, which is expected to be released in 2018, will be able to do so.

The accident highlighted the friction between Mobileye and Tesla Motors, an issue that was brought further into light by George Hotz of comma.ai.

Comma.ai is a startup that is working on an aftermarket self-driving car kit that is expected to be released within the year. The company is one of the only two teams that were able to complete a fully autonomous lap at Sonoma Raceway during the first autonomous track day in the world. Hotz previously turned down a position at Tesla Motors, saying that he preferred to instead "crush Mobileye."

According to Hotz, Mobileye does not want to innovate, with its business model focusing on working with regulators to lower the star safety ratings of vehicles that do not utilize Mobileye's technology. Tesla Motors, on the other hand, is always looking for innovation, as it wants to give customers unique driving experiences.

The end of the partnership between Tesla Motors and Mobileye will not affect the improvement of the company's Autopilot system, according to CEO Elon Musk. He said that the development was an expected one, but it will not be affecting the company's plans.

"Mobileye's ability to evolve its technology is unfortunately negatively affected by having to support hundreds of models from legacy auto companies, resulting in a very high engineering drag coefficient," Musk added.

It is likely that Tesla Motors will begin to create the technology that it sourced from Mobileye in-house, especially with the hiring of former AMD chip engineer Jim Keller to be the vice president of Autopilot. It will not be hard for the company to do so, Hotz said, as Mobileye's system can be easily reproduced.

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