Intel subsidiary Mobileye shared its Q1 2023 earnings results alongside its parent company this week, but there was less than good news to see in the company’s results. One of the most glaring details was that Mobileye has now lowered its revenue guidance and expects greater losses throughout its fiscal 2023. These changes are attributable to Tesla and its aggressive price wars in China where Mobileye is supplying several clients in the electric vehicle sector with its technology.
Mobileye’s lowered guidance and revenue were posted in its Q1 2023 earnings results posted on its investor relations website on April 27, 2023. According to the overall results, where Mobileye previously provided guidance on revenue to the estimate of $2.192 billion USD and $2.282 billion, the company has now adjusted its revenue to $2.065 billion and $2.114 billion. Additionally, where Mobileye previously expected operating losses between $110 million and $160 million, it now expects losses between $166 million and $195 million.
CEO Amnon Shashua attributed the adjustments to a “number of headwinds” currently affecting sales of EVs from clients utilizing Mobileye’s SuperVision technology. Earlier this year, Tesla slashed prices on its electric vehicles in China and put out several price changes globally since. With these price changes affecting EV sales from competing manufacturers to whom Mobileye lends its technology, Mobileye itself is also suffering from the currently difficult market.
Mobileye’s lowered guidance came in on top of Intel’s Q1 2023 earnings results, which claimed a beat on revenue against expectations, but still suffered losses in earnings-per-share (EPS). For more tech company earnings results reporting, stay tuned as further major companies’ fiscal quarters come to an end and their reports come out.