Mobileye shares plunge after self-driving tech company cuts guidance amid Tesla’s EV price war

Mobileye shares plunge after self-driving tech company cuts guidance amid Tesla’s EV price war


Mobileye signage during the company’s IPO at the Nasdaq MarketSite in New York, US, on Wednesday, Oct. 26, 2022. Mobileye Global Inc., the self-driving technology company owned by Intel Corp., priced one of the biggest US initial public offerings of the year above its marketed range to raise $861 million.

Michael Nagle | Bloomberg | Getty Images

Shares of Mobileye, Intel‘s self-driving subsidiary, were trading sharply lower on Thursday after the company cut its full-year forecast, citing weakness in China’s electric vehicle market.

Shares were down 20% in early trading on Thursday morning.

Mobileye provides chips, sensors and software for advanced driver-assist systems. CEO Amnon Shashua said on Thursday said that shipments of Mobileye’s most advanced system, called SuperVision, were likely to suffer amid “a number of headwinds” affecting EV sales in China.

Mobileye now expects its 2023 revenue to come in between $2.065 billion and $2.114 billion, with an operating loss between $166 million and $195 million for the year. In January, the company guided to revenue between $2.192 billion and $2.282 billion and an operating loss between $110 million and $160 million.

China’s EV market has been roiled by Tesla‘s recent aggressive price cuts and a reduction in government incentives for EV buyers. Mobileye counts Chinese EV makers Nio and Zeekr, a unit of Chinese automaker Geely, among its customers.

Nio CEO William Li told CNBC earlier this month that his company won’t cut its prices to follow Tesla.

But Shashua said the disruption to Mobileye’s deliveries was likely to be temporary, as more automakers doing business outside of China – including Polestar – will begin shipping vehicles with the SuperVision system later this year.

The cuts to guidance were announced as part of Mobileye’s first-quarter earnings report. Its revenue increased 16% from a year ago, to $458 million, while adjusted earnings per share of 14 cents fell from 16 cents in the year-ago period.

Stock Chart IconStock chart icon

hide content

Shares of Mobileye sold off Thursday after the self-driving tech company cut guidance in response to Tesla’s EV price war.



Source

What the government shutdown means for commercial real estate
Business

What the government shutdown means for commercial real estate

The sunset is reflected in the windows of the US Capitol as a man runs on the National Mall in Washington, DC, on October 1, 2025, the first day of the US federal government shutdown. Andrew Caballero-reynolds | Afp | Getty Images A version of this article first appeared in the CNBC Property Play newsletter […]

Read More
Gold prices keep rising, and jewelry companies are sounding the alarm
Business

Gold prices keep rising, and jewelry companies are sounding the alarm

Gold prices held steady on Thursday, hovering near the record high hit the day before, helped by expectations of further U.S. rate cuts and political uncertainty. David Gray | Afp | Getty Images Amid global economic turbulence, the prices of precious metals have been climbing higher and higher. The price of gold in particular has […]

Read More
Startups are staying private longer thanks to alternative capital
Business

Startups are staying private longer thanks to alternative capital

Klarna Group Plc signage during the company’s initial public offering (IPO) at the New York Stock Exchange (NYSE) in New York, US, on Wednesday, Sept. 10, 2025. Michael Nagle | Bloomberg | Getty Images A version of this article appeared in CNBC’s Inside Alts newsletter, a guide to the fast-growing world of alternative investments, from […]

Read More