(Bloomberg) -- Mobileye Global Inc. shares plummeted to new lows after the automotive supplier slashed its annual forecasts, citing several customers dialing back their production plans.
Multiple global manufacturers have made “meaningful reductions” to their second half production estimates, which is “primarily related to China,” Mobileye said in a statement Thursday. The driver-assistance system supplier has also seen a decline in orders from Chinese carmakers compared to what they were indicating earlier.
Shares of the company spun off from Intel Corp. plunged as much as 26% to $15.55, the lowest intraday price since their debut in October 2022. The stock had already more than halved this year through Wednesday’s close.
Mobileye now sees sales falling to between $1.6 billion and $1.68 billion this year, down from as much as $1.96 billion previously. The Jerusalem-based company also lowered its projection for adjusted operating income to well below what analysts were projecting.
“We previewed a bad cut to guide, and it was much worse,” Chris McNally, an Evercore ISI analyst with the equivalent of a buy rating on Mobileye’s stock, wrote in a report to clients. “Investors will remain highly frustrated.”
Mobileye said that one of its customers outside of China delayed its launch of a high-volume advanced driver assistance system. This, combined with new tariffs in the US and Europe, also contributed to the company lowering its guidance.
(Updates with share move context in headline and first paragraph.)
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