rewrite this title and make it good for SEOMobileye soars after launch of Tesla’s Robotaxi

The much heralded launch this week of Tesla’s Robotaxi service in Austin, Texas has boosted the entire autonomous driving sector. One of the main beneficiaries of all the hype is Israeli advanced driving assistance systems (ADAS) company Mobileye Global Inc (Nasdaq: MBLY), which saw its share price jump 22% on Monday and Tuesday to a market cap of $14.6 billion.

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Oppenheimer Israel investment researcher Omri Efroni says, “The major automakers have not been able to develop the technology themselves, so they are collaborating with Mobileye, and it benefits from this dynamic. Tesla is very advanced and has a huge competitive advantage, and on the other hand, China has lenient regulation that also hurts Western manufacturers, and their solution for both factors is to work with Mobileye and not develop it themselves. They will not buy technology from Tesla, which is a direct rival, and therefore prefer Mobileye, which is a systems supplier and not a competitor.”

Now, he says, the market expects Mobileye to present more contracts with major automakers, including Mercedes and GM, for example. Mobileye is already working with some of the manufacturers on other products, and the market expects more.

According to Yahoo Finance, the average target price for Mobileye shares is about $19, a premium of 5.9%. Mobileye held its Wall Street IPO two and a half years ago at a price of $21 per share, which reflected a valuation of about $17 billion, so it is still lower than the IPO price even after the latest increase.

Published by Globes, Israel business news – en.globes.co.il – on June 26, 2025.

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