Mobileye explodes on the stock market, the Intel autonomous car on the right track

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Shares of the company jumped 40%.

Mobileye explodes on the stock market, Intel's self-driving car on the right track

Mobileye has been working on autonomous driving technologies for 23 years. In 2017, then valued at $15 billion, Intel bought the company with the aim of diversifying its activity, which was mainly focused on microprocessors. Five years later, to raise $861 million, Mobileye went public. She couldn't find a worse context, but thanks to her portfolio of clients, her price has skyrocketed. It must be said that its revenues are solid, up 41% to $460 million in the second quarter. His losses, meanwhile, fell from $21 million to $7 million.

Mobileye explodes on the stock market, the Intel autonomous car on the right track

The share price Mobileye shares on its first stock market sessions © MarketWatch

Mobileye on the stock market, Intel has the stranglehold

Mobileye's IPO is a success. In the first hours of trading, shares gained 40% from $21 to over $28. Its price then stabilized around 27 dollars for a capitalization of 21 billion dollars. And despite the company now being public, Intel still has a stranglehold. Its 750 million Class B shares, each worth 10 times a Class A share in terms of decision-making power, will allow Intel to engage even more intensely in the market.

Few people know its name in the general public, but the company is still one of the most technologically advanced. Moreover, the realization of its robotaxis park is very close – an element that reassured investors to invest.

Opposite, its competitor is called Waymo, piloted by the Alphabet group (the parent company of Google). Waymo is not on the stock market but in the accounts of the American group, the subsidiary weighs for 30 billion dollars, or 2.4% the value of Alphabet. The two companies are fighting to seize partnerships with manufacturers. Waymo works in particular with Mercedes-Benz, Renault-Nissan, Stellantis and Volvo. Mobileye has won the Volkswagen group with Audi, BMW, GM and even Ford.

Icy wind on the market

Going public in 2022 is a real gamble as the context is far from opportune (rising interest rates, inflation, etc.). But for specialists in autonomous driving technologies, the situation is even worse. An icy wind hits the market. According to a Crunchbase analyst, an average drop of 81% affected no less than 14 startups. Quanergy Systems, which works on LiDAR technology, lost 99% and Embark Technologies, for autonomous trucks, 97%.

Shareholders leave no room for error and speculation of the period 2020-2021 is over. Translation, for these companies, the development of technologies takes longer than expected, costs a lot of money and the competition is strong. Even Ford has decided to abandon its own research to rely on that of specialists.

The avenues for development are also numerous and sometimes, certain trendy technologies are replaced by new ones. others, wiping out the companies behind their development. For example, for the companies in charge of developing LiDAR technologies, there are great doubts that Tesla has drawn a line under it to equip its cars with cameras only. Last failure to date for the ultrasonic sensors, which have been permanently removed from the equipment.