Mobileye founder Shashua acquires $10.4M-worth of shares after stock crashes
Mobileye founder Shashua acquires $10.4M-worth of shares after stock crashes
The autonomous vehicle systems manufacturer's market cap is at an all-time low of $12.24 billion after its shares fell by almost 50% in the past three months, and by nearly 65% since the start of the year.
Amnon Shashua, CEO and co-founder of Mobileye, recently purchased 631,963 shares of the company, an SEC filing revealed on Monday. Following this transaction, Shashua now owns a total of 4,080,097 shares of Mobileye.
Shares of Mobileye were priced at $16.51 on the day of the transaction after plummeting last week on the back of disappointing second quarter results. The share price has continued to fall since, with the company's market cap currently at an all-time low $12.24 billion.
Mobileye shares have fallen by almost 50% in the past three months, and by nearly 65% since the start of the year.
The slowdown in the electric vehicle market in China, combined with inventory accumulation, led Mobileye to another weak quarter. Its revenues in the second quarter amounted to $439 million - a decrease of 3% compared to the corresponding quarter in 2023. Compared to the very weak previous quarter, Mobileye has managed to increase revenue by 84%.
Despite the inventory levels almost balancing out at the end of the second quarter, Mobileye is lowering its forecasts for the second half of the year. Operationally, Mobileye recorded another tough quarter with an operating loss of $94 million, almost three times compared to the corresponding quarter last year.
Mobileye now expects annual revenues of $1.6-1.68 billion compared to $1.8 billion according to the previous forecast. The operating loss will amount to $531-580 million compared to a loss of $378-468 million in the previous forecast.
Mobileye has been facing significant losses since the end of 2023 when it discovered that its customers had accumulated large inventories of its advanced driver-assistance systems (ADAS). Since then, it has been struggling to recover. This is also reflected in its stock, which is trading at a historic low, even below the value of $15 billion, at which it was sold to Intel in 2017.
