February 23, 2024

A sign is seen during Mobileye’s initial public offering on the Nasdaq MarketSite in New York, U.S., Wednesday, Oct. 26, 2022. Mobileye Global Inc., the self-driving technology company owned by Intel Corp., priced one of the largest U.S. initial public offerings that year, raising $861 million for products that exceeded its market reach.

Michael Nagel | Bloomberg | Getty Images

Mobileye stock, IntelShares in its self-driving unit fell sharply on Thursday after the company cut its full-year forecast, citing a weak electric vehicle market in China.

Shares closed down about 16% for the day.

Mobileye provides chips, sensors and software for advanced driver assistance systems. Shipments of Mobileye’s most advanced system, SuperVision, could be affected by “many headwinds” affecting electric vehicle sales in China, CEO Amnon Shashua said on Thursday.

Mobileye now expects its 2023 revenue to be between $2.065 billion and $2.114 billion, with a full-year operating loss of between $166 million and $195 million. In January, the company forecast revenue of $2.192 billion to $2.282 billion and an operating loss of $110 million to $160 million.

China’s EV market takes a hit teslaRecent sharp price cuts and reduced government incentives for EV buyers. Mobileye counts Chinese EV makers Nioh Zeekr, owned by Chinese automaker Geely, is also one of its clients.

Nio CEO Bin Li told CNBC earlier this month that his company would not follow Tesla in cutting prices.

But Shashua said Mobileye’s disruption to deliveries could be temporary as more automakers operate outside of China — including pole star – Shipments of vehicles equipped with the SuperVision system will begin later this year.

The guidance cut was announced as part of Mobileye’s first-quarter earnings report. Its revenue rose 16% from a year earlier to $458 million, while adjusted earnings per share were 14 cents, down from 16 cents a year earlier.

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Shares of self-driving technology company Mobileye sold off on Thursday after the self-driving technology company cut its guidance in response to Tesla’s electric vehicle price war.