Blame it all on Tesla? Automatic driving giant Mobileye plummets 30%!
Analysis shows that the price war initiated by Tesla is the main reason.
At the beginning of the US stock market, Mobileye, an autonomous driving technology company, fell by 30% after disappointing quarterly results and lowered its full-year financial guidance.
Analysis shows that the electric vehicle price war led by Tesla is the main reason.
Poor Mobileye Guidance
Mobileye's adjusted earnings per share for the first quarter were 14 cents, with sales of $458 million.
Wall Street expected earnings per share of about 12 cents and sales of $454 million.
The key is in the guidance.
Mobileye currently expects full-year operating profit of about $560 million and sales slightly below $2.1 billion, which is lower than the previous expectation given in January.
Wall Street's expectations are $600 million and $2.2 billion, respectively.
Is the reason the price war?
Mobileye said: "The negative impact of the price war led by Tesla and the reduction of government subsidies on the Chinese electric vehicle market."
"Although in recent weeks, the order flow of our main customer, SuperVision, has improved, we have lowered the guidance for the 2023 fiscal year considering the revision of this year's prospects."
SuperVision is the name of Mobileye's most advanced driving assistance product, which can provide an autonomous driving experience.
Most importantly, price wars have consequences.
As prices fall, automakers have to cut costs in some areas, which seems to be affecting the adoption of more advanced driving assistance technologies.