Mobileye Shares Plunge Amidst Carmaker Slowdown
Mobileye Global Inc., the company spun off from Intel Corp., saw its shares plummet by as much as 26%, dropping to a low of $15.55 during intraday trading. This significant decline marks new lows for the company after the automotive industry announced plans to scale back production.
Mobileye specializes in developing and deploying advanced driver assistance systems (ADAS) and autonomous driving solutions. The company's technology has been widely adopted by leading automakers such as General Motors, Honda, and Nissan. However, recent reports indicate that several major car manufacturers are adjusting their production plans in response to supply chain disruptions, economic uncertainties, and changes in consumer demand.
The reduced production forecasts have impacted Mobileye's outlook, leading investors to sell off the company's shares. The company's share price has declined by over 30% since the start of the year, reflecting the market's concerns about the impact of the production slowdown on Mobileye's revenue and profitability.
Mobileye has yet to issue a statement regarding the share price decline and the implications of the automotive industry slowdown. However, the company is expected to provide an update on its business outlook during its upcoming earnings call scheduled for later this month.
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