Foresight Autonomous Holdings FRSX Stock News

Foresight Autonomous Holdings Ltd. (NASDAQ: FRSX) is gaining big in the market this morning with early gains of nearly 80%. The gains come after the company announced that it signed an agreement with a top tier automobile supplier in China. Here’s what’s going on:

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FRSX Stock Rockets On Agreement

In a press release issued early Friday morning, Foresight Autonomous announced that it has signed a multi-phase technological cooperation agreement with a Tier One Chinese supplier. According to the agreement, the two companies will work together to develop smart mobility solutions for the Chinese automotive industry.

In particular, the company said that it will be working to develop these solutions for two Chinese vehicle manufacturers.

According to the release, FRSX and the Tier One supplier will design, develop and commercialize automatic safety solutions. These solutions will then be implemented in various vehicles.

At the moment, the supplier, whose name has not been disclosed, is involved in several projects with Chinese automobile manufacturers for the implementation of autonomous functions. As such, it is possible that the agreement will lead to the integration of the QuadSight vision system developed by FRSX in the existing projects.

Foresight also said that the supplier has agreed to purchase a prototype of the QuadSight system for evaluation of capabilities and suitability for its current projects. Moreover, the company expects to generate tens of thousands of dollars in revenue through the sale of this prototype.

Once the prototype is purchased and evaluated, the supplier will formulate a detailed scope of work for development of a project that will integrate the QuadSight visiion system. FRSX said that once the scope of work is completed, it and the supplier will negotiate a commercial agreement in connection with this project.

Also, as a result of the agreement, the two companies will be approaching government entities for project funding. This funding is likely to take place under Israel-China bilateral governmental funding programs. Nonetheless, the company made it clear that the project is not dependent on this funding being granted.

In a statement, Haim Siboni, CEO at FRSX, had the following to offer:

I am pleased that our technology has reached a level of maturity allowing us to engage in such agreements. Working closely with a Tier One supplier will allow us to gain a foothold in the large and growing Chinese market and enable us to make our advanced vision technology available to the local Chinese automotive industry. This agreement will offer us the opportunity to be part of ongoing projects and work directly with OEMs.

This Is Huge News

The truth of the matter is that the race to create safer vehicles through the use of autonomous technologies is on. Considering the new agreement, Foresight is working its way to the beginning of the line in this race.

Should all go well with the collaboration, the tens of thousands of dollars that the prototype sale will lead to will likely prove to be a drop in the bucket. After all, the potential for revenue creation through autonomous vehicle technologies is compelling to say the least.

All in all, this news could propel the company to the next level, and it’s easy to see that investors feel the same when you look at FRSX stock action today.

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