Mobileye’s Recent Setback in Stock Market

Mobileye Global, a prominent player in autonomous- and assisted-driving technology, has recently faced a setback in the stock market. Despite this, CEO Amnon Shashua remains unfazed and emphasizes the company’s strong traction in its core business.

The Stock Downturn

Mobileye’s stock has experienced a decline of almost 30% since the end of December. The reason behind this decline is the revelation that customers had accumulated excessive inventory of Mobileye gear due to a pandemic-related supply shortage, leading to overordering.

Consequently, Mobileye anticipates a 50% decrease in first-quarter revenue compared to the previous year. However, the company expects revenue for the remaining year to remain stagnant or potentially increase by mid single-digit percentages.

Making Waves at CES

Amidst these developments, CEO Amnon Shashua made a significant impact at CES through an hour-long media briefing and a dynamic booth in the West Hall of the Las Vegas Convention Center. At their booth, Mobileye showcased multiple vehicles equipped with their cutting-edge technology.

The most notable news from CES is Mobileye’s recent partnership with a major Western auto maker. This collaboration is set to produce 17 vehicles—both gasoline-powered and electric—scheduled for release in 2026.

Shashua’s Perspective

In an interview with _, Amnon Shashua dismisses the earnings warning as a temporary blip caused by excess inventory. He emphasizes that this setback will have no long-term consequences for the company.

Shashua reaffirms his vision of making driving safer by promoting widespread acceptance of Mobileye’s innovative technology. With its roots in his graduate school research on machine vision, Mobileye aims to revolutionize the automotive industry by ultimately achieving fully autonomous vehicles.

Mobileye’s Journey

Mobileye, headquartered in Jerusalem, initially went public in 2014 before being acquired by Intel for a staggering $15.3 billion in 2017. After returning to the public market last year at $21 per share, the company’s stock opened at $26.71 and currently stands at $30.84. Intel remains the majority shareholder of Mobileye.

Mobileye’s Advancements in Autonomous Driving Technology

Mobileye, a leading provider of autonomous driving technology, is making significant strides in the industry with its range of innovative systems. Prof. Shashua, the company’s spokesperson, highlighted Mobileye’s entry-level systems, which focus on driver assistance functions such as collision avoidance and lane keeping. This system, known as the “hands on, eyes on” approach, has gained popularity for its ability to enhance supervision on the road.

Taking autonomous driving to the next level is Mobileye’s Chauffeur system. With a higher level of autonomy, this technology enables “hands off, eyes off” driving, allowing drivers to engage in other activities while their vehicle operates autonomously. Furthermore, Mobileye offers an advanced system called Drive, designed specifically for robotaxis and similar applications, providing full autonomy.

Mobileye’s partnerships and agreements with various automobile manufacturers are essential for its growth in the industry. Investors have been keeping a close eye on the company’s collaboration with Zeekr, owned by Geely Automotive in China. In 2023 alone, around 160,000 Zeekr vehicles were shipped with Mobileye’s Supervision system, showcasing the system’s demand and success.

Additionally, Mobileye has secured design wins with prominent car brands like Polestar, Volvo, Mahindra from India, Porsche, and FAW. Alongside these wins, there are an additional 17 car models from a Western auto manufacturer that remain unidentified. This brings the total number of models equipped with advanced Mobileye systems to 30, all in different stages of development.

Prof. Shashua believes that these design wins have a substantial impact on the company’s future growth and success. He emphasizes that Mobileye’s business model involves a lengthy development phase once a design win is attained. However, these vehicles remain in production for at least seven years or more, solidifying Mobileye’s position in the market.

Despite any temporary challenges related to excessive inventories of entry-level hardware, Prof. Shashua reassures that this does not overshadow Mobileye’s significant progress. He is confident that the company’s success in securing design wins and its expanding list of partnerships are of utmost importance to its long-term growth.

In the coming months, Mobileye aims to unveil its collaboration with a new Western auto manufacturer, pending approval. This exciting development will further solidify Mobileye’s position as a top player in the autonomous driving technology market.

Contact us at Mobileye for more information on our cutting-edge autonomous driving systems.