Shares of autonomous driving technology company Mobileye Global (NASDAQ:MBLY) are rising after the firm won an with Volkswagen (OTCMKTS:VWAGY). The agreement is set to , as well as the Audi, Bentley, Lamborghini and Porsche brands.
MBLY stock is trading today at around $29.60 per share, up more than 4% from its close on March 19. Mobileye has a market capitalization of almost $24 billion.
Still, Mobileye stock is down more than 25% so far in 2024.
MBLY Stock: Eyes Front
Intel (NASDAQ:INTC) bought Mobileye for $15.3 billion back in 2017. The company often featured Mobileye in technology presentations before the hiring of Intel CEO Pat Gelsinger.
Mobileye’s 2022 initial public offering (IPO) was a . The transaction raised for Intel and MBLY stock jumped 34% on its first day of trading.
Per CNN Business, Mobileye believes that its addressable market can climb from a value of $16 billion as of 2022 to $480 billion by 2030 as cars become increasingly autonomous. Still, shares fell hard back in January after Mobileye lowered its 2024 forecast and . More recently, the company decided to , laying off 130 people.
Volkswagen wants Mobileye to deliver This means there is high automation and the software can drive the car under specific circumstances. However, a driver is still needed. Full automation is reached at “Level 5.”
Volkswagen itself has had a hard time in recent years. Shares are down about 40% for the last two years as the automaker has struggled to gain traction in the electric vehicle (EV) market. Volkswagen last year, up almost 35% from 2022.
What Happens Next?
Intel still owns most of Mobileye. Meanwhile, self-driving continues to face a skeptical public.
On the date of publication, Dana Blankenhorn held a LONG position in INTC stock. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.
