# Mobileye Announces Major Design Win with Western Automaker
Mobileye, the provider of autonomous driving systems, has experienced a challenging start to the New Year, with its stock plummeting 30%. This drop came after the company issued a disappointing outlook for both the first quarter and the rest of 2024. However, Mobileye has now delivered some positive news to investors. On Monday, the company revealed that it has secured a design win from a major Western automaker.
As outlined previously, Mobileye's business can be divided into three primary parts. The first part is Drive, which includes front-facing software and related tools designed to enhance driver safety. This system addresses tasks like collision avoidance, emergency braking, and lane-keeping, effectively protecting drivers from their own erratic behavior. Building upon this foundation is SuperVision, a more comprehensive system that offers increased autonomous capabilities. This enables drivers to enjoy a "hands off, eyes on" experience. Finally, the most advanced platform developed by Mobileye is Chauffeur. With this technology, drivers can confidently divert their attention away from the road, thanks to the "hands off, eyes off" operation it offers.
In a recent statement, Mobileye disclosed that it has secured "a series of production design wins" with the major Western automaker. This deal will see Drive, SuperVision, and Chauffeur systems integrated into 17 gasoline-powered and electric vehicles set to be released in 2026. CEO Amnon Shashua expressed his belief that this win will significantly expand global access to automated driving for consumers.
While Mobileye has not disclosed the specific automaker involved in this collaboration, more details may be revealed at a news conference scheduled for Tuesday morning at the CES trade show in Las Vegas.
# SuperVision: Revolutionizing the Automotive Industry
SuperVision, an innovative technology developed by Mobileye, is making waves in the automotive industry. With over 100,000 installations in Zeeker cars produced by Geely, a China-based auto manufacturer, SuperVision has already proven its potential. But it doesn't stop there. Mobileye has also signed agreements with renowned brands like Porsche, Polestar, and Volvo to incorporate SuperVision into their new models. Additionally, the company has previously announced partnerships with FAW Group and Polestar for autonomous driving technology.
In an interview last year, Mobileye's CEO, Shashua, confidently predicted the widespread adoption of SuperVision or similar systems by most auto makers in the coming years. According to him, autonomy is no longer a matter of speculation but a reality that will soon be available to consumers.
However, it's worth noting that Mobileye recently faced some challenges due to excessive inventory built up by customers following the pandemic-induced supply crunch. As a result, the company expects a 50% decline in first-quarter revenue compared to the previous year. Nevertheless, Mobileye remains optimistic about the year ahead, forecasting flat to modest growth in revenue. The company has revised its projected SuperVision unit sales for 2024 to be between 175,000 and 195,000 units, signaling its confidence in the product's future.
Despite the slight setback, Citi analyst Itay Michaeli maintains a positive outlook on Mobileye. He believes that the company is well-positioned as it prepares for CES (Consumer Electronics Show), an event known for showcasing cutting-edge technologies. Michaeli suggests that if Mobileye can present compelling proof of its next-generation autonomous and assistant driving systems at CES, the stock should recover and gain momentum.
The future of driving is driving itself, and SuperVision is leading the way. With its advanced features and expanding partnerships, Mobileye is poised to revolutionize the automotive landscape. Keep an eye out for its performance at CES, as it may determine the trajectory of both the company and the industry.