MW Mobileye's robotaxi ambitions have 'progressed significantly,' and the stock surges

By William Gavin

A key partner also announced expansion plans, which Mobileye said can show off its technology

Mobileye has seen better-than-expected demand for its autonomous driving technology.

Mobileye Global is touting its robotaxi advancements after the autonomous vehicle technology company saw a stronger-than-expected start to the year.

Mobileye said on Thursday that its work with Volkswagen (XE:VOW3) "progressed significantly" in the March quarter, noting that more than 100 of the Germany-based carmaker's ID. Buzz autonomous buses are now being tested on public roads in six cities in the U.S. and Germany. Meanwhile, Volkswagen's mobility-services unit, MOIA, has chosen Orlando, Fla., for its initial launch.

"It's another opportunity for Mobileye to prove its end-to-end capability in terms of executive complex physical [artificial-intelligence] systems at scale," CEO Amnon Shashua said on an earnings call of the plans for Orlando, according to a transcript.

Mobileye executives noted on the call that it is easier to bring AV technology and robotaxis to market in the U.S. than in Europe, which tends to be more cautious. However, they said the partnership with Volkswagen should give it an advantage and allow Mobileye to be "one of, if not the only" robotaxi operator in Europe.

It will likely face stiff competition. British startup Wayve is working with several companies to test and deploy robotaxis and recently raised $60 million from chip makers Advanced Micro Devices $(AMD)$, Qualcomm $(QCOM)$ and Arm Holdings $(ARM)$, adding to an earlier $1.2 billion funding round.

Alphabet's $(GOOG)$ $(GOOGL)$ Waymo started testing its robotaxis in London this month. And Dutch regulators approved a version of Tesla's advanced driver assistance system this month. Tesla $(TSLA)$ said Wednesday that European Union leaders will review its technology next month.

Mobileye is also angling for a presence in India, the world's third-biggest car market, where it sees "significant potential for growth" for advanced driving software. India's Mahindra plans to use Mobileye's hands-free, eyes-on software in at least six new models.

"We believe Mobileye Drive technology has meaningful scaling advantages over the competition and look forward to continued strong execution over the course of 2026," the company said in a statement.

Mobileye shares rallied 10.1% on Thursday. They have soared 32.6% since closing at a record low of $6.56 on March 30, but they are still down 16.7% in 2026.

The Jerusalem-based company on Thursday reported first-quarter revenue that rose 27% from a year ago to $558 million, and adjusted operating income that increased 61% to $95 million. Wall Street had at the time of the report expected revenue of $520 million and adjusted operating income of $70 million.

The company also slightly raised its full-year guidance for revenue, citing better-than-expected demand in the March quarter. It now expects revenue of $1.94 billion to $2.02 billion, up from a range of $1.9 billion to $1.98 billion, while guidance for adjusted operating income was raised to a range of $185 million to $235 million from a range of $170 million to $220 million.

On a call with investors, Shashua said that even with the raised outlook, there is "sufficient conservatism baked" into the second half of the year, based on its visibility for the second quarter of 2026, he said.

-William Gavin

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April 23, 2026 17:02 ET (21:02 GMT)

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