$MBLY Ready for $45? Read below to find out! 👇 

$MBLY has seen a significant decline over the past year, falling from $43 to $10; a drop of ~75%. We are finally seeing $MBLY form a bottom showing higher lows the past 3 months. With many strategic partnerships in place, we believe $MBLY is set for a turnaround, having a green year after falling 54% last year. 

Technical Setup: $MBLY looks like its ready to finally breakout of its trend line its been trading under for the last year. Once we get above 23.50 we can see a new trend form to the upside towards 45. 

Earnings Highlights: The worst of $MBLY’s earnings seems like it’s in the past. Their past earnings they reported revenue at $486 million, an 8% YoY decrease. This was due to reduced EyeQ shipments to China. Overall shipments decreased from 9.4 million to 8.6 million from the prior year. 
Strategic Partnerships: We have seen new partnerships with automakers such as Volkswagen, BMW, Ford and others to integrate Mobileye’s technologies in their vehicle lineup. Mobileye has multi-year contracts with these companies and will likely hold these contracts when renewal comes. This ensures consistent revenue streams. 

Technological Advancements: Within their partnerships they have expanded their Road Experience Management (REM) platform to collect and utilize real-time data for mapping. The focus of this is to increase volume to enhance map accuracy and coverage. They will then be able to monetize this off to other automakers in the future when robotaxis are a thing. 

Regulatory Safety Push: Governments worldwide have emphasized that they will be pushing for mandatory use of Advanced Driver Assistance Systems (ADAS) such as lane assist and automatic emergency breaking. This fully aligns with the product offerings at Mobileye. 

Risks: $MBLY used to have partnerships with Tesla; however, Elon decided to create his own hardware and software of autopilot and FSD. Biggest risk for $MBLY is other companies also following suit to what Tesla did and create their own advanced driver-assistance systems. We are already seeing this in China with companies either creating their own in-house solutions or relying on Chinese companies such as Huawei and Baidu. 

My conservative price target for $MBLY is $40 by the end of 2025.

Not financial advice – just my thoughts!