Mobileye stock recorded a sharp decline of 15% last Thursday after the company announced earlier in the day the resignation of founder and CEO Prof. Amnon Shashua. The move came alongside the publication of second-quarter financial reports for 2026 and against the backdrop of general market declines on US stock exchanges.
Shashua (66), who founded Mobileye in 1999 together with Ziv Aviram, will step down from the role of CEO and continue to serve as a board member. The company offered him the position of chairman. The board of directors will hire an executive search firm to select a replacement in cooperation with controlling shareholder Intel. Shashua, who led the development of the company’s computer vision and autonomous driving systems, also recently stepped down from AI21, a company he founded, after it laid off about 60% of its workforce. Today, Mobileye’s technology is installed in more than 250 million vehicles worldwide, and the company is also expanding into robotics. The company’s valuation, which peaked at $39 billion in 2023, currently stands at approximately $7.5 billion.
The hit to the stock occurred despite an improvement in profitability metrics presented by the company in the second quarter. Mobileye reported revenues of $508 million, compared with $506 million in the corresponding quarter last year. Operating loss narrowed to $30 million (compared with $74 million last year), and net loss dropped to $21 million (3 cents per share), compared with a loss of $67 million in the corresponding quarter. Adjusted operating profit rose to $155 million. Following the results, Mobileye raised its annual revenue forecast to $1.97 to $2.02 billion.
