Amnon Shashua: Yeah, so I mentioned that previously. So, in 2024, there are going to be five car models all from the Geely Group. Two of ZEEKR, Smart, Volvo, and Polestar, four. And then starting end of 2024, beginning of 2025, four to six FAW car models would be added. And then the big jump is in 2026, where we have Porsche, we have the 17 models of — car models of the western — big western OEM, and we have Mahindra in China. And in all cases…
Nimrod Nehushtan: India.
Amnon Shashua: Mahindra in India. And in all cases, we’re talking about the standard fit.
Vijay Rakesh: Got it. Great, thank you so much.
Dan Galves: Just to follow up, Vijay, yeah, we want to be more conservative, right? And this is why we provided more of a tracking document with the number of models, the OEMs, the launch dates for analysts to make their own estimates for these years. And like we said before, kind of the analysts that have calibrated to this and adjusted their forecasts, we see those as reasonable and achievable. So thank you. Next question, please. Kat, are there additional questions?
Operator: Our next question comes from Luke Junk from Baird. Please proceed.
Luke Junk: Good afternoon. Thanks for taking the question. First question, you stated in the prepared remarks that EyeQ visibility has improved in recent weeks. Just hoping you can expand on what is better understood sitting here in late January.
Amnon Shashua: I think the visibility is better understood.
Moran Shemesh: Yeah. Okay. Yeah. So first of all, I mean, based on the shipment schedule for 2024 and the information that we have on specific inventory levels from our own research and based on also on customers’ input. So we of course reviewed the detailed production forecast and as we mentioned we expect the majority of the excess inventory should be cleared by the end of Q1 with most of the rest clearing in Q2. Of course, actual production levels of per OEM customers will play a role. But based on our projection, again we believe the excess inventory will be fully cleared by year end. At the end of the day, we had a very true analysis of again, ADAS [self-treatment] (ph) rate and lower production per OEM to understand that in order to meet the production of this year, that’s what we need to provide, of course, taking into account the inventory issue.
So we have better visibility. We also, of course, we’ve mentioned Q1, we have also some visibility to Q2 that we said will be at least 100% higher than Q1. So yeah, and for the rest of the year, again, in line with production expectation and the analysis and what we got from our customers, that’s where we think we’re going to land.
Dan Galves: Thanks, Moran. I’ll just follow up with a couple of things because we’ve been obviously looking very closely. So the visibility since January 4th has improved because we have commitments for Q1. We know what the — generally what the volume is going to be in Q1. We have more visibility in terms of Q2 starting to adjust into commitment. So that’s why we have the confidence to say that Q2 will be at least 100% higher than Q1. And then in terms of the back half, we have the indications from the Tier 1s and these kind of match up with kind of the market-based forecast that we’re looking at as well. So overall, we feel good about kind of the visibility towards the 31 million to 33 million units of EyeQ volume in 2024 and that, that level of production will or that level of shipments will result in the elimination of the excess inventory almost completely by the middle of the year and then potentially with a little bit left in the back half.
Luke Junk: Understood. Thanks for that, Dan. And then my follow-up question, hoping you could comment on some of the key facets of the anticipated expense growth in 2024. In particular, there’s been certainly an increasing focus on the AI-related facets of driving policy development. I think it would just be clarifying to understand how Mobileye is investing incrementally in Generative AI tools this year? Thank you.
Amnon Shashua: Our OpEx growth is mostly devoted on our desire to execute all these programs in SuperVision. The [Porsche] (ph), the western OEM, all of those are converging to 2026 to continue supporting ZEEKR, of course with the many OTAs that are going forward. Our move from a Tier 2 to Tier 1 with Porsche and the western OEM, we’re acting as a Tier 1 supplier. In some other cases, we’re acting as a Tier 1.5, but all of this requires more resources to support this in a very good way. As of using AI, this does not need growth. This is our normal activity with the existing manpower that we have. It is more moving from a Tier 2 to Tier 1 and supporting so many car models that are coming out in production in the next few years that requires some growth.
Moran Shemesh: Yeah. Of course, the headcount cost increases, again, a few tens of millions relates to the higher number of employees and maybe more enhanced salary raises and also the savings that we had in 2023. We need to recall in Q4 we had some reimbursement for military service. These are not things that necessarily will happen in 2024. Also the ILS effect, Israeli Shekel effect in 2023. Besides that, we have also significant facilities growth of a few tens of millions. We’re moving to the new campus. The [appreciation] (ph) there is approximately $20 million higher, so also in terms of facilities. And besides that also our EyeQ platform, EyeQ 6 and EyeQ 7, our Radar product as we approach 2025. Also in the Lidar domain, we have some growth in 2024.
