Mobileye stock plunges 20% as Tesla's price cuts are killing the Chinese EV market
Mario Tama/Getty Images News
Mobileye (NASDAQ:MBLY) shares fell more than 20% in early trading on Thursday as the company cut its guidance for the full-year, citing weakness in the Chinese electric vehicle market.
"The China electric vehicle market has been negatively impacted by meaningful pricing actions by a global EV OEM, reduction of government electric vehicle subsidies, and general economic weakness in the country," the company said in a statement, referencing Tesla's (TSLA) recent price cuts.
Mobileye (MBLY) now expects revenue for 2023 to be between $2.06B and $2.11B, below the $2.25B analysts were expecting. The company previously guided 2023 revenue to be between $2.19B and $2.28B.
Based in Israel, Mobileye (MBLY) also expects adjusted operating income to be between $548M and $577M, but a loss between $166M and $195M on an adjusted basis.
In conjunction with the guidance cut, Mobileye (MBLY) reported first-quarter results that topped consensus as the average system price increased to $53.90 from $51 in the year-ago period, thanks to a more than doubling of Supervision sales volume.
Mobileye (MBLY) was spun off by Intel (INTC) in late 2022 but is still majority owned by the chip giant.
More on Mobileye

Mobileye slips even as Baird praises its autonomous maps
Mobileye slips even as Daiwa starts coverage, sees upside