Mobileye cuts revenue forecast on slow China EV demand, shares sink

China’s decision last year to end a more than a 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 Plc 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 Corp, also faces intensifying competition in the assisted driving market from Nvidia Corp and Qualcomm Inc which 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 $2.07 billion and $2.11 billion, compared with $2.19 billion and $2.28 billion estimated previously.

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For the first quarter, Mobileye posted revenue of $458 million, compared with analysts’ average estimate of $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.