Mobileye Global forecast annual revenue below Wall Street expectations on Thursday, indicating uncertain demand for its assisted-driving chips as automakers navigate a challenging economic environment marked by high tariffs.
Shares of the Israel-based company fell 5 per cent.
US President Donald Trump’s tariffs on the import of vehicles and auto parts have jolted the global automotive industry, forcing carmakers to scrap forecasts and rework supply chains.
This risk comes as North American automakers rein in their once-aggressive electric vehicle push, pressured by Chinese competition, the loss of certain tax credits and a shift toward cheaper models and hybrids.
The forecast accounts for a “level of understanding that there is some volatility in the industry, so we want it to be on the more conservative side,” Executive Vice President Nimrod Nehushtan said.
Mobileye previously said it would not be directly affected by the tariffs since its customers are the ones bearing the cost of imports, but it had flagged that demand for its products would be impacted if customers pare back on production.
“This (outlook) isn’t panic, it’s prudence,” said Emarketer analyst Jeremy Goldman, noting the company is accounting for macro risks such as softer auto demand and production impacts from tariffs, even if Mobileye is not directly affected by the duties.
Analysts remain split on how the auto market will fare in 2026, with Cox Automotive forecasting a 2.4 per cent decline in auto sales due to slower economic growth and slashed EV incentives. However, lowered interest rates and maturing leases could buoy demand, some analysts note.
Mobileye expects 2026 revenue to be between $1.90 billion and $1.98 billion, compared with analysts’ estimate of $2 billion, according to data compiled by LSEG.
For the fourth quarter, the company reported revenue of $446 million, beating analysts’ estimates of $432.3 million.
