Intel’s automated driving division, Mobileye, has filed for what is expected to be the largest IPO of the year. However, its success is far from guaranteed, as it faces a rapidly evolving and competitive self-driving vehicle industry.
A Brief History of Mobileye
Mobileye was founded in 1999 and has benefited from its first-mover advantage in supplying computer vision technology to power advanced driver assistance systems (ADAS) for automakers. Since its acquisition by Intel five years ago for $15.3 billion, the company has expanded its business model to include high-precision mapping, safety hardware and software, and autonomous mobility as a service (AMaaS) for consumers, fleet customers, and automakers.
A Precarious Position in the Industry
Mobileye’s S-1 filing with the U.S. Securities and Exchange Commission underscores its precarious position in the industry. The company faces a proliferating number of rivals from every side, including robotaxi developers like Argo AI, Aurora, Auto X, Baidu, Cruise, Momenta, Motional, Waymo, and Zoox. Additionally, more automakers are developing their ADAS software stack in-house, which could potentially reduce Mobileye’s revenue.
Partnerships and Growth
However, Mobileye is looking to other partnerships as a means of growth. The company has long-term partnerships with China’s Geely, Great Wall Motors, and SAIC, as well as Indian automakers such as Mahindra & Mahindra. These partnerships position Mobileye for growth in emerging markets.
Additionally, Intel acquired Moovit, an Israeli journey planner app that crowdsources mapping data, for $900 million in May. Mobileye plans to parlay Moovit’s MaaS platform and global user base into business-to-business partnerships with fleet operators. This could provide a new revenue stream for the company.
Intel’s Continued Support
One of Mobileye’s strongest partnerships remains intact – its relationship with Intel. After the IPO, Intel will continue to serve as a strategic partner and hold a majority of the voting power of Mobileye’s common stock. Intel CEO Patrick Gelsinger has previously stated that the conglomerate will use proceeds from the IPO to fund chip plants, including two $20 billion factories in Ohio and Arizona, easing Mobileye’s supply shortage.
Key Takeaways
- Mobileye faces a rapidly evolving and competitive self-driving vehicle industry.
- The company’s S-1 filing highlights its precarious position in the market.
- Mobileye is looking to partnerships as a means of growth, including long-term agreements with Chinese and Indian automakers.
- Intel will continue to serve as a strategic partner after the IPO.
- The company’s supply shortage may be alleviated through Intel’s investment in chip plants.
Related Topics
- EC Hardware
- EC Market Analysis
- EC Mobility Hardware
- EC Mobility Software
- Intel
- Mobileye
- mobility as a service (MaaS)
- Moovit
About the Author
Jaclyn Trop covers EVs and automotive technology at TechCrunch. She was awarded a Knight-Bagehot fellowship in business and economics reporting from Columbia University, where she also earned a master’s degree in journalism. Her byline has appeared in The New York Times, The New Yorker, Fortune, Vogue, Glamour, Bloomberg Businessweek, Newsweek, Fast Company, Forbes, Marie Claire, Men’s Health, Entrepreneur, Rolling Stone, Robb Report, Town & Country, Discover, Overland Journal, Consumer Reports, U.S. News & World Report, and Refinery 29.
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