Shares of TASER International, Inc. (NASDAQ: TASR) fell nearly 8 percent on Tuesday. The drop appears to be in relation to a press release from Motorola Solutions Inc (NYSE: MSI), which announced its entry into the police body camera space.
According to the release, Motorola is coming out with its "first-ever, three-in-one combination body-worn video camera, radio speaker and microphone along with a new, cloud-based content management system." A spokesperson told Benzinga that the company is "excited" about the product and sees it as offering a "very compelling end-to-end" product.
Motorola Solutions had previously worked with VIEVU for a line of body-worn cameras; The new camera will have "smart interface" and work with cloud-based storage solution.
Taser has been the dominant player in the body cam space, particularly since the Ferguson, Missouri protests in August 2014.
"I can't remember a top 50 or 60 police department that has picked anyone other than Taser," Craig-Hallum analyst Steven Dyer told the . "Most sophisticated departments are looking for a lot more than a camera. It's relatively easy to make a small body-mounted camera that takes a video clip."
Taser's cloud-based system -- Evidence.com -- came out in February 2014.
The Tribune went on to say that Dyer "expects most major departments to choose a provider for these solutions in the next 12 to 24 months and described competition in the market as a 'land grab.'"
Since August 2014, Taser shares are up about 66 percent. The stock hit a high of around $35 in that time; shares traded around $23 on Tuesday afternoon.
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Oppenheimer's Andrew Uerkwitz spoke with Benzinga about Taser's volatility. He believes the market thinks Motorola will now be used by the Chicago Police Department instead of Taser, which he cites as the reason for Taser's sell-off on Tuesday.
There's a likelihood, however, that Chicago P.D. will still use Taser products, Uerkwitz added.
Benzinga is awaiting comment from Taser and VIEVU.
Nick Donato contributed to this report.
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