Mobileye Global, a leading provider of self-driving technology, has revised its annual revenue outlook downward due to weakened demand for its driver-assistance chips. This adjustment comes amid a backdrop of reduced production among global automakers and a decline in electric vehicle sales.
The company’s shares, which have already lost over half their value this year, fell more than 11% in premarket trading following the announcement.
Automakers are grappling with a volatile consumer demand landscape and are closely managing production levels after an inventory surplus triggered by the pandemic. The slowdown in electric vehicle adoption has further strained the sector, impacting suppliers like Mobileye. The company, which partners with over 50 automotive manufacturers including Ford, Honda, and Volkswagen, has seen its business affected by these industry-wide challenges.
Mobileye now anticipates annual revenue between $1.60 billion and $1.68 billion, a decrease from its previous forecast of $1.83 billion to $1.96 billion. Analysts had projected a revenue of $1.87 billion, according to LSEG data.
For the second quarter, Mobileye reported revenue of $439 million, down from $454 million a year ago and slightly above the analysts’ average estimate of $424.8 million.
