Shares in Mobileye Global Inc. (NASDAQ:MBLY) slumped by more than 5% in premarket U.S. trading on Tuesday after chipmaker Intel (NASDAQ:INTC) announced that it is planning to sell a $1.5 billion stake in the Israel-based autonomous driving firm.
In a regulatory filing, Intel said it would be offering 35 million in Class A common stock in Mobileye. The move will bring its voting share in Mobileye down to around 98.7% from its current level of 99.3%.
The move comes as Mobileye is attempting to fend off intensifying competition in the autonomous driving space from semiconductor businesses like Qualcomm (NASDAQ:QCOM) and Nvidia (NASDAQ:NVDA).
Mobileye lowered its forecast for annual revenue in April, citing weak demand for electric vehicles in key auto market China. A decision taken by the Chinese government in 2022 to halt subsidies for EV purchases has hit sales of these cars in the country.
Last October, Mobileye stock was listed on the Nasdaq at $21 per share and ended nearly 40% higher following its first trading day. The shares closed on Monday at $42.37.
