Shares drop early as Mobileye cuts revenue forecast

Autonomous tech company Mobileye Global (NASDAQ:) announced Thursday that the company has lowered its forecast for annual revenue, sending the company’s shares down nearly 15% before the bell. The cut is due to a slowdown in electric-vehicle demand in China.

China’s decision last year to end a more than decade-long subsidy for EV purchases has forced automakers to deepen discounts in the world’s largest market in a bid to arrest a demand slowdown.

Mobileye said the downturn forced it to reduce the annual shipment forecast for its driver-assist system SuperVision.

Jerusalem, Israel-based Mobileye now expects revenue between $2.07 billion and $2.11 billion, compared with $2.19B and $2.28B estimated previously.

For the first quarter, Mobileye posted of $458M, compared with analysts’ average estimate of $454.7 million, according to Refinitiv IBES data.

Excluding certain items, the company earned 14 cents during the quarter, compared with estimates of 12 cents per share.

Shares of MBLY are down 14.48% in pre-market trading on Thursday.