Mobileye Global Inc. Class A Common Stock (MBLY)

History and Background

Mobileye was founded in 1999 in Israel. It pioneered advanced driver-assistance systems (ADAS) and autonomous driving technologies. Acquired by Intel in 2017, it was later spun off in an IPO in 2022.

Core Business Areas

• ADAS (Advanced Driver Assistance Systems): Mobileye's primary business involves developing and supplying computer vision and machine learning-based ADAS technologies to automotive manufacturers, including camera-based systems, radar and lidar processing, and driving policy software.
• Autonomous Driving Solutions: Mobileye develops complete self-driving systems for autonomous vehicles, including hardware, software, and mapping solutions. This includes Mobileye Drive, their full self-driving system.
• REM (Road Experience Management) Mapping: Mobileye's REM technology creates high-definition maps using crowdsourced data from vehicles equipped with Mobileye technology. These maps are used for ADAS and autonomous driving applications.

Leadership and Structure

Amnon Shashua is the CEO. The company operates with a functional organizational structure, focusing on engineering, research, sales, and marketing related to ADAS and autonomous driving.

Key Offerings

• Competitors: Nvidia, Qualcomm, Texas Instruments
• EyeQ Chip Series: Mobileye's EyeQ chips are specialized processors designed for computer vision and machine learning in automotive applications. These chips power many ADAS features in vehicles globally. Mobileye claims high market share, although exact figures fluctuate. Competitors include Nvidia, Qualcomm, and Texas Instruments.
• Market Share (%): 78
• Competitors: TomTom, Here Technologies
• Market Share (%): 60
• REM (Road Experience Management): REM generates high-definition maps using crowdsourced data from vehicles equipped with Mobileye technology. This is critical for enabling ADAS and autonomous driving features. Market share is significant due to Mobileye's large install base in vehicles. Competitors include TomTom and Here Technologies.
• Competitors: Waymo, Cruise, Tesla
• Market Share (%): 5
• Mobileye Drive: A full self-driving system designed for autonomous vehicles. While revenue is currently lower, it represents significant future potential. Competitors are numerous and diverse, including Waymo, Cruise, Tesla, and other autonomous driving technology developers.

Industry Overview

The automotive technology industry is experiencing rapid growth, driven by increasing demand for ADAS and autonomous driving features. The industry is competitive, with established automotive suppliers, technology companies, and startups vying for market share.

Positioning

Mobileye holds a leading position in the ADAS market with its EyeQ chips and REM mapping technology. It is transitioning towards becoming a major player in the autonomous driving market with Mobileye Drive. Competitive advantages include its established relationships with automotive manufacturers and its advanced computer vision and machine learning capabilities.

Total Addressable Market (TAM)

The TAM for ADAS and autonomous driving is estimated to reach hundreds of billions of dollars in the coming years. Mobileye is well-positioned to capture a significant portion of this market with its diverse product portfolio.

Key Competitors

• NVDA
• QCOM
• GWAV

Competitive Landscape

Mobileye's key advantages include its established relationships with automakers and its proven technology. However, it faces increasing competition from companies with broader technology portfolios and resources.

Foresight Automotive

• Year: 2019
• Acquisition Price (USD millions): 0
• Strategic Rationale: This purchase of shares was not an acquisition, but rather an investment to collaborate with Foresight Automotive.

Moovit

• Year: 2020
• Acquisition Price (USD millions): 900
• Strategic Rationale: Acquisition of urban mobility app and data company, to expand mobility-as-a-service capabilities and accelerate autonomous driving deployment.

Ruler

• Year: 2024
• Acquisition Price (USD millions): 0
• Strategic Rationale: This purchase of shares was not an acquisition, but rather an investment to enhance its EyeQ technology and integrate Ruler's advanced image processing capabilities

Historical Growth: Mobileye has experienced significant growth in revenue and market share in the ADAS market over the past decade. Growth slowed during 2023/2024 due to automotive industry conditions and inventory digestion, however is expected to resume with increased automotive production volume.

Future Projections: Analysts project continued growth for Mobileye as the ADAS and autonomous driving markets expand. Projections depend on the successful execution of its technology roadmap and the adoption of its products by automotive manufacturers.

Recent Initiatives: Recent initiatives include the launch of Mobileye Drive, expansion of its REM mapping coverage, and partnerships with automotive manufacturers and technology companies.

Mobileye is a leading provider of ADAS solutions, holding a significant market share. While facing increasing competition, the company's established relationships and advanced technology provide a solid foundation. The future success will depend on its ability to execute its autonomous driving roadmap and secure new partnerships while managing R&D and regulatory challenges. The company is navigating cyclical automotive challenges. Mobileye needs to continue to innovate and address these hurdles to maintain its leading position.

Data Sources:

• Company Website
• SEC Filings
• Industry Reports
• Analyst Reports

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Market data and analyst estimates are subject to change. Past performance is not indicative of future results.