Redeye27 Mar 2024 01:59
Https://www.redeye.se/research/991607/smart-eye-ais-order-and-comments-on-gsr
Yesterday’s stock movement
The most likely explanation behind yesterday’s stock price drop is the statement from Seeing Machines that the GSR regulation for 2024 type approval of new vehicles allows legacy steering-wheel-based DMS for drowsiness monitoring, aside from the advanced camera-based DMS where e.g. Smart Eye is involved. While this statement is true, it is unfortunate and inadequate since distraction monitoring requires advanced DMS. Thus, in order to fulfil both distraction and drowsiness monitoring, advanced DMS is required. There is no way a steering wheel torque sensor can understand that a driver is distracted from simply how the driver steers the vehicle.
Another possible explanation is the first ratings from the Insurance Institute for Highway Safety (IIHS), which is a US traffic safety organization that influences the US equivalent of Euro NCAP – National Highway Traffic Safety Administration (NHTSA). No DMS received a “Good” rating, but the least bad ratings were awarded to car models with advanced camera-based DMS. Our main conclusion is that the high standards from IIHS are positive for the market-leading incumbents, i.e. Smart Eye and Seeing Machines. A good-enough DMS that barely passes GSR will simply not cut it, which is similar to Euro NCAP’s demands. The IIHS test scores are one step forward for a coming US DMS mandate from NHTSA, which is also something that all OEMs are preparing for and have prepared for, for a long time.
Alternatively, it is just a normal, unrelated sell-off, following a time of strong price appreciation.
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