• By entering the driverless ride-hailing business, Mobileye intends to tap into the growing market early to increase profits.
• The company will begin with about 100 vehicles in a major U.S. metropolitan city in 2027.
• It will leverage resources from its commercial offering, Mobileye Drive, and its popular public transit and urban mobility app, Moovit, to support its robotaxi business.

Shares of Mobileye (MBLY) were in the spotlight on Tuesday after the company announced that it is pivoting into the autonomous ride-hailing business amid the rising popularity of robotaxis in the U.S.

At the time of writing, MBLY stock was up nearly 4% premarket and was among the top ten trending tickers on Stocktwits.

Rationale For Robotaxis

The move represents a strategic evolution for Mobileye, since it's already a leading developer of advanced driver-assistance systems and autonomous driving technologies. By entering the driverless ride-hailing business, the company intends to tap into the growing market early to increase profits.

The company also pointed out that it will simultaneously supply its customers with driverless technologies as it builds its new business.

"The robotaxi revolution has only just begun, and its potential for transforming how we travel around the world continues to increase," said CEO Amnon Shashua. "As interest in autonomous mobility accelerates, the industry has become increasingly dependent on a small number of technology providers and business models. We believe there is an opportunity for a new approach—one built on deep autonomous-driving expertise, strong industry partnerships, and proven capabilities across the mobility ecosystem.”

The Initial Fleet

The company will begin with about 100 vehicles in a major U.S. metropolitan city in 2027, and will leverage resources from its commercial offering, Mobileye Drive, and its popular public transit and urban mobility app, Moovit.

For its initial fleet, Mobileye will collaborate with fleet operators, vehicle integration partners, technology suppliers, and other parties. Following the successful testing of its business model, it will focus on scaling its vehicle fleet to 17,000 over five years.

What Do Retail Traders Think About MBLY?

On Stocktwits, retail sentiment about the MBLY stock turned ‘bullish’ from ‘bearish’ over the last 24 hours, amid ‘high’ message volumes.

One user on the platform said Mobileye will play a crucial role in the upcoming revolution involving autonomous vehicles and robots.

MBLY stock is down over 5% so far this year and more than 36% over the last 12 months, underperforming the S&P 500.

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