It’s been a rough time for the self-driving vehicle industry, with issues around GM’s Cruise unit renewing the regulatory spotlight on the space in late 2023. Unfortunately for investors betting on a quick turnaround, self-driving technology company Mobileye Global warned that it may take longer than anticipated. ⚠️
The company said its results this year will be impacted by customers clearing excess inventory for their books before placing new orders. It provided a preliminary 2024 operating loss between $378 and $468 million, much more significant than its preliminary 2023 operating loss of $33 to $39 million. Its 2024 revenue forecast of $1.83 to $1.96 billion also fell short of the $2.58 billion consensus view. 📊
Analysts say there’s an excess supply of 6 to 7 million units of its highest revenue-generating product, so its first-quarter revenues will likely fall about 50% YoY. With supply chain fears nearly fully eased, Tier 1 customers who rapidly built up chip stocks to avoid shortages will likely work through their existing inventory before reordering.
$MBLY shares fell 25% on the news, dragging other auto chipmakers like NXP Semiconductors, Onsemi, Texas Instruments, and Wolfspeed lower. Mobileye parent Intel also suffered. 📉
