Mobileye shares soared after Intel Corp. announced it is not "currently" planning to sell its majority stake in the autonomous driving tech company, relieving investor concerns. Intel, which holds an 88% stake in Mobileye, clarified that it has no immediate plans for divestment, propelling Mobileye’s stock up 19%—its largest intraday gain since October 2022. Intel reaffirmed its belief in the future of autonomous driving and Mobileye’s leadership in advanced driver assistance systems.
Intel CEO Pat Gelsinger has been restructuring the company, halting factory projects in Germany and Poland and creating a new subsidiary for its manufacturing division. Previously, Intel explored options to offload part of its Mobileye stake, but no immediate moves are planned. Mobileye, acquired by Intel in 2017 for $15 billion, went public in 2022 while Intel retained most of the ownership, selling some shares last year for $1.5 billion.
Despite the recent rally, Mobileye had lost 73% of its value this year due to lower production targets from automakers, particularly in China. Intel’s decision to hold its stake removes a key uncertainty for the company, though the possibility of a future sale remains open.
Source: https://www.bloomberg.com/news/articles/2024-09-19/mobileye-jumps-after-intel-says-it-won-t-divest-majority-stake
