Mobileye cuts revenue forecast on slow China EV demand, shares sink
AUTONOMOUS driving technology maker Mobileye Global lowered its forecast for annual revenue on Thursday (Apr 27) due to a slowdown in electric-vehicle demand in major auto market China, sending the company’s shares down nearly 15 per cent before the bell.
China’s decision last year to end a more than decade-long subsidy for EV purchases has forced automakers to deepen discounts in the world’s largest market in a bid to arrest a demand slowdown.
Mobileye, which counts auto parts suppliers Aptiv and Magna International among its customers, said the downturn forced it to reduce the annual shipment forecast for its driver-assist system SuperVision.
The company, which is backed by Intel, also faces intensifying competition in the assisted driving market from Nvidia and Qualcomm that are trying to make inroads into the space.
Tough regulatory scrutiny and delayed commercial adoption of assisted driving technology has, however, clouded the outlook for the industry, sparking some worries among investors.
Jerusalem, Israel-based Mobileye now expects revenue between US$2.07 billion and US$2.11 billion, compared with US$2.19 billion and US$2.28 billion estimated previously.
For the first quarter, Mobileye posted revenue of US$458 million, compared with analysts’ average estimate of US$454.7 million, according to Refinitiv IBES data.
Excluding certain items, the company earned 14 cents during the quarter, compared with estimates of 12 cents per share. REUTERS
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