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Mobileye, founded in 1999, has been at the forefront of mobility evolution with its autonomous driving and driver-assistance technologies. But recently its stock price has plummeted as Intel, which bought it several years ago, has struggled to adapt to the new AI world.
A photo shows Mobileyes fleet of self-driving vehicles in Israel | Photo: Mobileye, an Intel Company
Mobileye, the leading Israeli autonomous driving technology company that was acquired by Intel several years ago, announced Monday a major shift in its research and development strategy. The Nasdaq-listed firm (MBLY) is ceasing internal development of next-generation frequency-modulated continuous wave (FMCW) lidars for autonomous and highly automated driving systems.
According to Mobileye, this decision comes after a comprehensive review of their long-term technology roadmap. The company now believes that next-generation FMCW lidar is less critical to their plans for "eyes-off" driving systems. This strategic pivot is based on several factors, including significant advancements in their EyeQ6-based computer vision perception, promising results from their in-house imaging radar development, and unexpected cost reductions in third-party time-of-flight lidar units.
The company emphasized that this move will not impact any current customer product programs or ongoing product development efforts. Mobileye remains committed to its in-house imaging radar development, which meets performance specifications based on B-samples and is on track to enter production next year.
"Imaging radar is a strategic priority for Mobileye," a company spokesperson told Mobileye. "This is a core building-block technology that we expect to drive competitive advantage for Mobileye-based eyes-off systems in cost/performance optimization and scalability."
The decision to wind down the lidar R&D unit by the end of 2024 will affect approximately 100 employees. Mobileye estimates that operating expenses for the lidar R&D unit will total around $60 million in 2024, including about $5 million related to share-based compensation expenses.
While the company does not anticipate this action to materially impact its 2024 financial results, it will lead to significant cost savings in future lidar development spending. Mobileye, founded in 1999, has been at the forefront of mobility evolution with its autonomous driving and driver-assistance technologies. The company's expertise spans artificial intelligence, computer vision, mapping, and integrated hardware and software solutions. By the end of 2023, Mobileye technology had been incorporated into approximately 180 million vehicles worldwide.
In 2022, Mobileye became an independent company, separating from Intel (Nasdaq: INTC), which retains majority ownership. The company continues to pioneer groundbreaking technologies such as REM crowdsourced mapping, True Redundancy sensing, and Responsibility-Sensitive Safety (RSS) driving policy.
Mobileye's stock has recently struggled due to several factors. An industry-wide slowdown in autonomous driving has reduced demand for their products as automakers cut production. Intel has had its own woes, as the famous chipmaker has tried to catch up with other hyperscalers in the artificial intelligence boom.
