8. Mobileye NV (NYSE:MBLY)
Short Interest as % of Shares Outstanding: 1.65%
Number of Hedge Fund Investors In Q2 2024: 28
Mobileye NV (NYSE:MBLY) is a pure play autonomous driving company. This offers it a considerable advantage in the industry, as the firm is able to offer a variety of autonomous driving products such as real time road detection, driver navigation assistance, and products like its SuperVision platform which enables assisted driving at speeds faster than 100 kilometers. Mobileye NV (NYSE:MBLY) is also trying to compete in the lower costs ADAS market these days through its EyeQ6 platform to help capture customers that want lower prices. This is a recent trend in the autonomy industry and one that has threatened Mobileye NV (NYSE:MBLY)’s leading presence. At the same time, as its previous products such as warning systems have shown, the firm tends to lose market share when car companies self develop features similar to those that it offers and pioneers. With the current landscape of the autonomy industry seeing big ticket players such as Tesla and GM focusing on in house self driving capabilities, Mobileye NV (NYSE:MBLY) could face further headwinds on this front. Finally, 31% of the firm’s 2023 revenue came from China, which is a double edge sword. While it allows Mobileye NV (NYSE:MBLY) to capture one of the fastest growing and largest autonomy markets in the world, it could face a substantial blow if the US expands chip sanctions against China or China acts unfavorably against Western companies – especially as Mobileye NV (NYSE:MBLY) is an Intel subsidiary.
Mobileye NV (NYSE:MBLY)’s management is working with OEMs for its ADAS system partnerships. Here’s what they shared during the Q2 2024 earnings call:
“We are currently already responding to four RFQs representing over 19 million future units supported with a single EyeQ6 High with pricing that is approximately four times our current ASP and with similar gross margins to the Company average.
To put this value into context, the life revenue value of these RFQs from just four OEMs is already about double the value of all the combined ADAS RFQs we’re currently pursuing with more than 70 OEMs. On SuperVision and Chauffeur specifically, we have made substantial progress across many predevelopment engagements and we believe we are on track for major design wins by year-end 2024, with a strong pipeline of more to come in 2025. We currently have advanced product wins or are in advanced discussions with 14 OEMs, representing approximately 52% of industry production. Within that number, two of the OEMs are currently only pursuing surround ADAS category, I mentioned above, and two are pursuing both SuperVision and Chauffeur and surround ADAS.
We’re also seeing accelerated interest in our drive platform, which serves the mobility as a service market. The Volkswagen commercial vehicle program is progressing nicely. Zeekr is looking to develop with us in this area. And there is an additional major OEM from Japan, where we continue to progress through pre-award testing activities. We believe that we are in the inflection point of becoming the clear market leader in these initiatives, both technologically and commercially.”
