Mobileye Is Laying Off Staff. Is It Game Over for the Self-Driving Car Stock?

Core Viewpoint - Mobileye is experiencing significant challenges, including layoffs and declining financial performance, primarily due to reduced demand and increased competition in the autonomous driving sector, particularly from China [4][6]. Group 1: Company Overview - Mobileye is an advanced driver-assistance system (ADAS) and autonomous driving (AV) company with proprietary hardware, including the EyeQ system-on-chip (SoC) [1]. - The company went public in 2014, becoming the largest Israeli IPO in U.S. history, was acquired by Intel in 2017 for $15.3 billion, and was spun off again in 2022 [2]. Group 2: Financial Performance - Mobileye's revenue was $2.08 billion in 2023 but is projected to decline to $1.65 billion in 2024, with a slight recovery expected to $1.88 billion in 2025 [6]. - The company reported operating losses of $109 million in Q3 2025, a significant drop from an operating profit of $8 million in Q3 2024 [7]. Group 3: Market Challenges - The company is laying off 5% of its staff due to falling demand and a multi-quarter reset in customer ordering after excess inventory buildup [4]. - Increased competition from local Chinese companies offering cheaper and often superior self-driving software is impacting Mobileye's market position [4]. - Intel's sale of a large block of Mobileye shares has created additional supply pressure, contributing to a decline in stock value [5].