Doubling of Mobileye's Stock Price Marks Hopeful Future for Autonomous Vehicles

Interest in autonomous vehicles peaked a couple of years ago, but Mobileye, the Jerusalem-based leader in the industry, demonstrates the sector still has momentum. According to Globes, Mobileye’s stock as of February 5th was at $42.78 compared to just $21 on October 25. Mobileye’s market cap is now $34.306 billion.

This is an impressive showing taking into account the decline in interest in autonomous vehicles in the past few years. For instance, the Israeli auto tech industry raised $2 billion between 2018 ad 2019 compared to a mere $150 million. However, Mobileye’s recent performance shows that the autonomous vehicle segment has not only come roaring back, but it may also be ready to do a victory lap.

Mobileye’s New Vision for Autonomous Vehicles

Why has a decline in the autonomous driving sector not brought Mobileye down with it? The answer seems to be that the sector is looking to Mobileye as the leader. This company has changed its vision from focusing on robot-taxis to “eyes on, hands off driving.” This pivot could mark a new phase and revive enthusiasm for the auto tech space.

There’s no questioning Mobileye’s dominance in the ADAS (Advanced Driver Assistance System)–it has an 80% market share in the industry. Mobileye offers automatic shifting, cruise control, and braking technologies. The company’s executives have made bullish statements, including a prediction of $17 billion in revenue from ADAs by the end of the decade and reporting hundreds of new contracts.

Mobileye has shifted its vision from calling robo-taxis without drivers “the next big thing” to more profitable and realistic solutions for drivers. Although automatic taxis sound exciting, the company executives admitted this speculative technology would be less profitable, at least in the short run, than other automated driving technologies.

Eyes On, Hands Off Technology

Instead, Mobileye is focusing on not eliminating the driver, but making the task of driving less physically demanding. Many drivers still want some degree of control over their vehicles. With the help of Mobileye, technology, drivers can have an “eyes on, hands off” driving experience.

Systems can take control of steering and braking, but the driver supervises the driving and can take action when they need to. The technology can eliminate driver mistakes but not take the driver completely out of the picture.

Mobileye is enhancing its current technology with lasers and imaging systems and is upgrading software and hardware for improved mapping. This will evolve into a virtual “chauffeur” who will allow drivers to make decisions but not require them to keep their hands on the wheel.

Invest in Israel’s Tech Sector

The global tech sector has taken a hit, but Mobileye’s strong stock performance and revised vision for autonomous vehicles provide hope. Israeli investments in the tech industry are an ideal addition to your portfolio and are expected to increase in price as the global tech sector recovers.

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Mobileye price doubles