2023-04-29 21:08:00
Nominally, since October last year, the Israeli company Mobileye has been public, but if you rely on the published Intel form 10-Q information, the parent corporation still owns 94% of the shares of this developer of components for autopilot systems. This does not prevent Mobileye from publishing independent reports, which it used the day before, announcing the receipt of $458 million in revenue in the first quarter, which actually turned out to be slightly higher than market expectations.
Image Source: Mobileye
Other information had a negative impact on the company’s share price, which fell by 16% after the publication of the report. Mobileye management said that by the end of the current year, it expects to receive an operating profit of $560 million on revenue of no more than $2.1 billion. Back in January, these figures reached $600 million and $2.2 billion, and investors have so far adhered to the same forecast.
The management of Mobileye explained its pessimism simply. The world’s largest market for electric vehicles, which is China, has been hit by the actions of one global manufacturer that has adjusted its pricing policy very aggressively – Tesla’s actions are guessed in this comment. In addition, subsidies for the purchase of electric vehicles have ceased in China, and the country’s economy has not yet fully recovered from the pandemic.
The consequences of the price war with Tesla for Mobileye customers are very predictable – they have to look for reserves to reduce prices to save money, and not the cheapest autopilot systems are almost the first to be cut. Mobileye systems from Chinese manufacturers are used by Geely divisions, which produce electric vehicles under the brands ZEEKR and Polestar.
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