Mobileye scores major contract win

Mobileye (Nasdaq: MBLY), the flagship of Israel’s autotech industry, announced a strategic contract win yesterday with “a major Western automaker.” The contract is for the installation of Mobileye’s ADAS (advanced driver assistance systems) solutions in over 17 future models of the manufacturer, starting in 2026.

The solutions will be implemented across all the manufacture’s brands, including in combustion models. They consist of Mobileye SuperVision, considered one of the most advanced non-autonomous packages in the industry; Mobileye Chauffeur, which offers autonomous driving with monitoring by the driver; and Mobileye Drive, a fully driverless system aimed at this stage at the commercial transportation market, such as robotic taxis.

Under the contract, the two companies will begin serial production of fully autonomous vehicles in 2026. Mobileye did not name the automaker in question, but industry sources say that it is Volkswagen, with its various brands. The contract win was partly thanks to the development of an innovative software tool that will enable each vehicle brand to design its own “driving experience” on the back of Mobileye’s hardware. All the systems will use the Mobileye EyeQ 6H systems-on-chip.

“These design wins represent an historic milestone in the development of automated driving, and will greatly increase its availability to customers globally,” said Mobileye CEO Prof. Amnon Shashua. “Execution of these production programs will set the standard for software-driven intelligent driving, leveraging the expertise of both companies at volume to serve customers around the world.”

Last week, Mobileye’s share price fell by some 27% after it sharply cut its second quarter guidance. Yesterday, the share price rose 3.08% to close at $31.43, giving the company a market cap of $25.33 billion.

Published by Globes, Israel business news – en.globes.co.il – on January 9, 2024.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.