Mobileye Global delivered some disappointing news on Thursday, warning that sales might not be as strong as everyone hoped in 2026. The company, which makes chips for self-driving and assisted-driving systems, expects its annual revenue to fall short of Wall Street’s goals. Investors reacted quickly, sending the company’s shares down 6% before the market even opened.
The main problem isn’t just with Mobileye; it’s the entire car industry. Car companies are currently navigating a messy economic landscape. President Donald Trump’s steep tariffs on imported cars and parts have sent shockwaves through the market. These taxes have forced many manufacturers to scrap their old plans and scramble to fix their supply chains before costs spiral out of control.
At the same time, North American automakers are cooling off on their big electric vehicle (EV) plans. They are struggling to compete with cheaper Chinese cars and are losing access to government tax credits that once made EVs more attractive. Instead of expensive electric models, many companies are now pivoting toward more affordable gas cars and hybrids.
Experts disagree on how the market will handle the rest of the year. Some analysts predict a modest decline in total sales as the economy slows and fewer incentives for buyers. On the bright side, lower interest rates and expiring leases might help some people afford new monthly payments.
Mobileye expects to bring in between $1.90 billion and $1.98 billion in 2026. That is slightly below the $2 billion analysts were expecting. The irony is that Mobileye actually finished last year strong. Its revenue in the final quarter reached $446 million, beating expectations. But even with a good finish to 2025, the uncertainty surrounding trade wars and the shift away from high-tech EVs has made the road ahead look much bumpier.
