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Mobileye Global (NasdaqGS:MBLY) Conference Transcript
Mobileye Mobileye (US:MBLY)2025-09-30 15:05

Summary of Mobileye Global Conference Call (September 30, 2025) Company Overview - Company: Mobileye Global (NasdaqGS:MBLY) - Industry: Advanced Driver Assistance Systems (ADAS) and Autonomous Vehicles Key Points Core Business and Financials - Mobileye's core ADAS business is generating significant revenue, with an estimated EPS of $0.60 to $0.65 attributed to R&D for advanced products that are not yet revenue-generating [9][8] - The core business is projected to generate approximately $1 billion in free cash flow, with an EPS of $1 [9] - Mobileye has been outperforming core customers in production, indicating growth potential and market share gains [9] Market Opportunities - New markets such as India and Latin America present significant growth opportunities due to low current ADAS penetration [10] - In India, ADAS penetration is around 5%, with expectations for substantial growth driven by new regulations and consumer demand for safety features [20] - Mobileye has design wins with major automakers, including a partnership with Porsche launching in late 2026 and Audi in 2027 [13][14] Product Development - Mobileye's product offerings include: - Supervision: An eyes-on product priced at approximately $1,300, designed for urban and highway driving with driver oversight [12] - Chauffeur: An eyes-off product for highway driving, priced between $2,500 and $3,000, expected to launch in 2027 [14] - The company is focused on enhancing safety ratings, which are becoming increasingly stringent, necessitating more advanced systems [11] Competitive Landscape - Mobileye aims to differentiate itself in the Robotaxi market by removing safety drivers, with plans to achieve this by mid-2026 [16][54] - The company is collaborating with Volkswagen to integrate its self-driving technology into the VW ID Buzz vehicle, which will feature redundant steering and braking systems [53] Regulatory Environment - The regulatory landscape in the U.S. is evolving, with indications of a federal framework to streamline certification processes [69] - In Europe, the certification process is more stringent, requiring real-world data validation, which may delay the removal of safety drivers until late 2026 [71] Deployment Plans - Initial deployment of Robotaxi services is planned for cities including Los Angeles, Dallas, and various locations in Germany, with a focus on integrating into existing ride-sharing networks [62][76] - The company is targeting a significant number of units for deployment, with Volkswagen's initial engagement for 12,000 units over four to five years [78] Future Outlook - Mobileye is optimistic about its growth trajectory, with expectations for increased demand for advanced ADAS systems as automakers transition to more sophisticated vehicle architectures [33] - The company is well-positioned to leverage its extensive data and technology to expand geographically and enhance its product offerings [66] Additional Insights - The competitive landscape is rapidly evolving, with increasing interest in autonomous vehicle technology from various players in the industry [16] - Mobileye's focus on collaboration with automakers is crucial for successful product development and market entry [37] - The company is aware of the challenges posed by consumer acceptance and regulatory hurdles but remains committed to advancing its technology [70][72]