Mobileye has forecast lower-than-expected revenue for 2025, citing continued weakness in the Chinese market due to increasing competition from local self-driving technology providers. The company expects revenue between $1.69 billion and $1.81 billion, falling short of the $1.94 billion analyst consensus from LSEG data.
Chinese manufacturers have been developing their own advanced driver-assistance systems (ADAS) at lower costs, limiting Mobileye’s shipments to the region. In December, the company noted that its major automotive customers were losing market share in China as local automakers ramped up production of more affordable electric vehicles (EVs).
While shipment volumes of Mobileye’s EyeQ chips in China have improved compared to 2024, they remain sluggish, executives stated in a post-earnings call on Thursday. The recent reintroduction of Chinese government EV subsidies could stimulate demand, but the impact remains uncertain.
Despite these challenges, Mobileye reported fourth-quarter revenue of $490 million, surpassing the $477.8 million estimate but marking a 23% decline from the previous year. The drop was attributed to lower demand for its EyeQ chips as automakers continue to work through excess inventory.
Looking ahead, Mobileye remains optimistic about 2025, stating that its ongoing tests with potential customers for its assisted driving technology “will bear fruit” next year. The company also dismissed concerns that legacy automakers will fully develop their own in-house driver assistance systems, as many are reassessing their EV strategies amid slowing demand.
On an adjusted basis, Mobileye posted earnings of 13 cents per share in the fourth quarter, exceeding estimates of 11 cents. However, gross profit declined by 30% during the same period.
