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Home » Further Reading

Further Reading: Why is Mobileye losing in China?

Phate Zhang/CnEVPost May 26, 2022 10:04 GMT+8

Mobileye has a business model that doesn't fit today's Chinese market, this article says.

Further Reading: Why is Mobileye losing in China?-CnEVPost

(Image credit: Zeekr)

Tesla (NASDAQ: TSLA), NIO (NYSE: NIO, HKG: 9866, SGX: NIO) and Li Auto (NASDAQ: LI, HKG: 2015) were all once Mobileye customers, but they have all abandoned the company's smart driving solutions.

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As of today, only Geely's premium electric vehicle (EV) brand Zeekr is still using Mobileye's solutions among mainstream car companies in China, where the EV and smart driving industries are growing rapidly.

Unfortunately, however, along with the delivery of Zeekr's first model, the Zeekr 001, the lack of smart driving capabilities has been met with criticism.

There have been recent rumors that Zeekr is also ditching Mobileye, and while this has been denied by the EV maker, it is widely believed that Zeekr made a mistake in choosing Mobileye.

Why Mobileye is losing in China, WeChat account C_world2021 tried to explain in a post on Wednesday.

"It is probably fair to say that Mobileye's business model is not suitable for today's Chinese market," the article said.

Mobileye's business model can be understood as a package of chip + camera + algorithm for sale.

Compared to other chip companies, Mobileye is more like a company that sells software and algorithms, with the chip becoming an accessory instead, according to the article.

If you want to know more, you can click here to get the page automatically translated by Google Translate.

Original in Chinese: https://mp.weixin.qq.com/s/nIrCx-_Y31w3ZMN_g7GSEQ

Note: Ji Krypton refers to Zeekr, JK 001 refers to Zeekr 001, Weilai refers to NIO, Xiaopeng refers to XPeng, and Ideal refers to Li Auto in the automatic translation.

Further Reading is a new section of CnEVPost that aims to share articles we see that are worth reading.

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#Mobileye#Smart Driving
Phate Zhang/CnEVPost
Phate is the founder and main author of CnEVPost. He has been reporting since 2009, mainly on macroeconomics and capital markets. Contact via: [email protected]
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