What happened
Shares of Foresight Autonomous Holdings (NASDAQ: FRSX) were trading higher on Friday. The stock is continuing to draw attention from investors after the company said on Wednesday that it has begun a pilot project with a major global automaker.
As of 10:45 a.m. EST today, Foresight's shares were up about 11.6% from Thursday's closing price.
So what
Foresight is an Israel-based maker of sensor systems for automotive applications, specifically advanced driver-assist systems (ADAS) and prototype autonomous-vehicle programs. The company has two subsidiaries: Foresight Automotive focuses on machine-vision systems for vehicles; the other, Eye-Net Mobile, is working to develop cellular-based V2X (for vehicle-to-everything) connected-car systems.
Foresight's products include automotive thermal-imaging cameras that can "see" in all weather conditions. Image source: Foresight Autonomous Holdings.
Foresight (the holding company) said on Wednesday that Eye-Net will begin a pilot program with "the intelligent transport system division of a multibillion-dollar global Japanese vehicle manufacturer" to test Eye-Net's accident-prevention system in the automaker's "smart city" project. The idea is that vehicles equipped with V2X systems can "sense" one another and automatically communicate to help avoid collisions.
(The "everything" in vehicle-to-everything implies that the vehicle will be able to communicate with smart infrastructure, not just other vehicles.)
Excitement about the potential for that deal -- and general enthusiasm among auto investors for all things "electric" and "autonomous" -- has likely been driving Foresight's stock higher over the last few sessions.
Now what
Foresight didn't identify the automaker. But we'll note that Toyota (NYSE: TM) announced last year that it is building a 2,000-person "smart city" near Tokyo, called Woven City, to test autonomous vehicles and related technologies.
That's not conclusive evidence, but it's certainly suggestive. We might find out more when Foresight reports its fourth-quarter and full-year 2020 earnings, likely in early March.
10 stocks we like better than Foresight Autonomous Holdings Ltd.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Foresight Autonomous Holdings Ltd. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of November 20, 2020
John Rosevear has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
