The maker of autonomous driving technology, Mobileye Global Inc, cut its prediction for yearly revenue on Thursday due to a slowdown in Chinese demand for electric vehicles, which resulted in a more than 30% decline in the company’s share price.
Aptiv Plc and Magna International, two manufacturers of auto parts, are among the clients of Mobileye, which has lowered its prediction for the yearly shipping of its driver-assistance system SuperVision.
The action was taken in response to the Chinese government’s decision to stop providing subsidies for EV purchases in the nation last year, which had a negative impact on demand.
Shares of Mobileye were down roughly 23%, trading at $33.17 per share. After being spun off by Intel Corp, the business went public in October with an IPO priced at $21 per share.
Nvidia Corp. and Qualcomm Inc., two chipmakers attempting to gain a foothold in the assisted driving sector, are increasing the rivalry that Mobileye must contend with. More than 90% of Mobileye is still owned by Intel, which will release its first quarter earnings on Thursday following the close of business.
Based in Jerusalem, Israel In contrast to an earlier prediction of $2.19 billion to $2.28 billion, Mobileye now expects yearly revenue to be between $2.07 billion and $2.11 billion.
According to Refinitiv IBES statistics, Mobileye reported first-quarter revenue of $458 million, which was slightly higher than the average analyst forecast of $454.7 million. The company earned 14 cents during the quarter after certain items were taken into account, above predictions of 12 cents per share.