Mobileye forecasts annual revenue below estimates as tariffs weigh on automakers

Jan 22 (Reuters) – Mobileye Global forecast annual revenue below Wall Street expectations on Thursday, indicating uncertain demand for its assisted-driving chips as automakers navigate a challenging economic environment marked by high tariffs. Shares of the Israel-based company fell 6% in premarket trading. U.S. President Donald Trump's tariffs on the import of vehicles and auto parts have jolted the global automotive industry, forcing several carmakers to abandon forecasts and scramble to adjust supply chains to mitigate the impact. This risk comes as North American carmakers rein in their once-aggressive electric vehicle push, struggling to keep pace with Chinese rivals, losing access to some tax credits and shifting toward more affordable models and hybrids. Analysts remain split on how the auto market will fare in 2026, with Cox Automotive forecasting a 2.4% decline in auto sales due to slower economic growth and slashed EV incentives. However, lowered interest rates and maturing leases could buoy demand, some analysts note. Mobileye expects 2026 revenue to be between $1.90 billion and $1.98 billion, compared with analysts' estimate of $2 billion, according to data compiled by LSEG. For the fourth quarter, the company reported revenue of $446 million, beating analysts' estimates of $432.3 million. (Reporting by Harshita Mary Varghese in Bengaluru; Editing by Vijay Kishore)

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