Mobileye Global Q3 2026 Earnings Call Transcript

Mobileye Global (NASDAQ:MBLY) reported third-quarter financial results on Thursday. The transcript from the company’s third-quarter earnings call has been provided below.

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Summary

Mobileye Global reported strong Q3 2026 results with an 8% revenue increase year-over-year, driven by high demand for the EyeQ solution and increased shipments despite a decline in global automotive production.

The company raised its full-year guidance, with revenue outlook 3.5% above original expectations and adjusted operating income nearly doubling due to cost discipline and an R&D incentive.

EyeQ shipments exceeded expectations, with projected full-year growth of about 10%, supported by strong performance with top customers and expanding partnerships with Chinese OEMs.

Strategic initiatives include expanding content per vehicle through surround ADAS solutions and REM technology, with notable partnerships including Volkswagen, Mahindra, and a large U.S. OEM.

The company is advancing its robotaxi integration with partners and plans to deploy a self-controlled fleet in 2027, emphasizing control over the technology stack to drive future cost reductions.

Financial performance highlights include a 20% year-over-year increase in adjusted operating income and a strong cash position, with $1.5 billion in cash and a share buyback program in progress.

Management acknowledges ongoing challenges with memory costs and Chinese OEM pricing pressure but maintains a positive long-term outlook with expected ASP improvements through new product launches.

Full Transcript

OPERATOR

Greetings and welcome to the Mobileye Global third quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host today. Mr. Gause, you may begin.

Dan Gause (Investor Relations)

Thanks, Sam. Hello everyone, and welcome to Mobileye Global’s third quarter 2026 earnings conference call for the period ending September 26, 2026. Please note that today’s discussion contains forward-looking statements based on the business environment as we currently see it, including regarding our future financial outlook. Such statements involve risks and uncertainties. Please refer to the accompanying press release which includes additional information on the specific factors that could cause actual results to differ materially.

Additionally, on this call we will refer to both GAAP and non-GAAP figures. A reconciliation of GAAP to non-GAAP financial measures is provided in our posted earnings release. Joining us on the call today are Professor Amnon Shashua, Mobileye Global CEO, and President Mehran Shamesh, Mobileye Global CFO, and Nimrod Nehushtan, Mobileye Global EVP of Corporate Strategy. Thanks, and now I’ll turn the call over to Amnon.

Amnon Shashua (Founder & CEO)

Thank you everyone for joining. Mobileye Global delivered a strong third quarter with results driven by high demand for our EyeQ solution. Looking at year-to-date trend, revenue was up 8% year over year, adjusted operating income up 42% and operating cash flow was over $300 million. We once again raised our full year guidance. The revenue outlook is now 3.5% above original expectations and adjusted operating income is about double the original outlook supported by good cost discipline and the R&D incentive we discussed in detail last quarter.

The driving force on the revenue side is EyeQ shipment volume which has exceeded expectations all year and is significantly outpacing global production trends. While global automotive production through Q3 has declined slightly on a year-on-year basis, our shipments are up 11%. We expect full year 2026 EyeQ shipments to grow about 10% at the midpoint versus 2025. We’re doing very well with our top 10 customers with volume expected to grow 7% even as those OEMs’ aggregate global production declined 5%.

Chinese OEMs are also choosing Mobileye Global to support the rapid emerging market expansion, adding more than 1 million units and 4 percentage points to our overall growth rate. We expect emerging markets ADAS penetration to be a key tailwind over the next few years. One relatively new tailwind is that Chinese OEMs’ expansion into Latin America and South Asia with vehicles that come standard with ADAS is driving legacy OEMs to increase ADAS fitment rate in these markets as well.

Additionally, India remains a high volume growth market in the near future given new regulations and strong consumer demand for safety. As we have discussed in the past, looking towards 2027 through 2030, our growth opportunity within ADAS has two reinforcing drivers, ADAS reaching more vehicles and Mobileye Global delivering more value in each vehicle. Rising fitment rates support unit growth while broader adoption of our software and systems capabilities create a path to higher content per vehicle. That is the multi-year opportunity beyond this year’s shipment performance. In the next generation of high-volume ADAS systems launching over the next few years, technology, product features, and trends support higher Mobileye Global ASPs and a greater share of system cost.

As our core customers grow their reliance on Mobileye Global for intelligence, safety, and scale, our customers appear to be pursuing higher-function ADAS along two parallel paths. First, low-cost highway hands-free functionality targeted at high-volume, mass-market vehicle platforms. Mobileye Global’s technology is part of the most first-generation L2 systems on the road today. We actually have content on the majority of vehicles produced in North America and Europe in 2026, but often just as a front camera perception supplier. As OEMs target lower cost and better hands-free availability in the second generation, Mobileye Global’s role is expanding to include components like surround camera vision, crowdsourced intelligence through REM, driving functions, driver monitoring, and automated parking.

Three OEMs have chosen our surround ADAS solutions based on EyeQ6 High, including Volkswagen, Mahindra, and a large U.S. OEM. A faster-to-market alternative to surround ADAS is adding REM to an existing EyeQ6 Lite program to support Level 2 functionality. We announced the first instance of this with Stellantis early in Q3. Since then, two additional OEMs have chosen this solution including one top 5 automaker from ASEAN and a top 10 OEM from Japan, and the Stellantis program has expanded to include European platforms.

Taken together, these surround ADAS and REM selections demonstrate adoption of our platform beyond front-facing camera perception. They show two routes to greater content per vehicle: supplying a broader system or adding software and mapping capabilities to an existing EyeQ program. As these programs enter production, that expanded role creates a path to higher ASPs. The second path is the development of higher functionality point-to-point systems similar to Tesla FSD that go beyond highways and arterial roads and support hands-free driving on diverse road types, either supervised or unsupervised. Our main thrust into this market is with the EyeQ6 High-based SuperVision and Chauffeur product expected to be launched with VW Group in 2027 and 2028. While SuperVision is nearer term and an important proof point, Chauffeur is particularly notable as there are few if any high-volume consumer Level 3 vehicles on the road today.

The customer continues to see this product as an industry first and a critical unique selling point for their launch of a flagship vehicle in 2028. REM, our road intelligence engine crowdsourced from about 8 million vehicles, is worth a specific call-out as market traction has really accelerated in the last two quarters, even into some of the multi-supplier point-to-point development programs announced recently. Two points to make here. As OEMs begin to realize the challenge of building a good demo into a vehicle system that can be validated across millions of miles of road types and environments, they’re realizing the value of data-driven road intelligence like REM.

They’re also realizing that REM can substantially improve availability of hands-free systems on various road types. Secondly, Tesla recently called out their own efforts to use crowdsourced data to serve the same purpose as REM, something previously they claimed not to. Broad intelligent databases like this cannot be duplicated without tremendous scale, which is why automakers are coming to Mobileye Global for that function. Turning to robotaxi, our self-driving system integration with various partners made meaningful progress this quarter with several milestones noted in the press release. It’s encouraging to see these efforts move to a pre-scaling milestone on our path to driver-out performance. Beyond our capital-light self-driving system supply efforts, we continue to see value in building the capability to participate across the entire robotaxi value chain.

Our rationale for broader participation through our own vertically integrated solution is to accelerate deployment of our self-driving system and capture more of the value it enables, not to pursue fleet ownership for its own sake. We have made significant progress in multiple areas. We have integrated Moovit’s rider experience and fleet orchestration stack, and initial testing is underway in Tel Aviv. We have multiple options for a vehicle platform and are currently negotiating an option that allows for rapid scaling after initial commercialization.

Roles and responsibilities of the vehicle builder, the uplifter, Mobileye Global, and operations are complex and need to be planned in parallel. We expect vehicle build to kick off at the beginning of 2027. We see advantages in an expanded role in the value chain as it can lead to more rapid validation and software update cycles and enable us to make fast decisions on the hardware stack. For example, our own stack will rely heavily on our imaging radars as a redundancy to cameras, enabling us to reduce radar content in anticipation of the next cost reduction wave that can drive scale into the future.

Turning to Mentee Robotics, version 3.2 of the robot is now operational and performing well. The next version, V4, is in the final stages of design with a production-ready architecture shaped by continuous feedback between AI development and hardware design. Mentee’s differentiated approach combines a simulation-first development pipeline and advanced AI. Synthetic data, imitation learning, and reinforcement learning enable the robot to develop agile human-like movement and sophisticated perception and manipulation capabilities.

Our simulation environment continuously generates challenging scenarios, allowing the team to train and improve the robot in situations that are difficult to reproduce using real-world data alone. At the task level, an agentic AI architecture combines vision-language models with specialized robot policies to break down complex tasks, execute them as sequences of skills, and verify successful completion. Overall, Mobileye Global’s foundation remains solid. Demand for our technology is outpacing production at our top 10 customers, while Chinese OEMs continue to choose our solutions for export markets, and over the course of 2026 we have seen a meaningful uptick in traction for advanced Level 2+ systems that indicate higher ADAS content per vehicle in the future. I now turn the call over to Moran.

OPERATOR

Thank you. We will now be conducting a question and answer session. We ask that you please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

One moment, please, while we poll for questions. Our first question is from Chris McNally with Evercore ISI. Please proceed with your question.

Chris McNally (Analyst at Evercore ISI)

Thanks so much and good morning, team. Maybe we could just comment on the status of the VW relationship. I know you made some prepared comments, but it seems sort of top of mind for investors. And I think VW has multiple points, multiple parts, but basically we see it divided as production car decisions and then their internal or longer-term efforts for autonomous. But I think we’ve all read some of the German articles out there about CARIAD taking on new partners, Wave in, maybe Bosch out, as well as it appears MOIA strategically may not be going as financially planned.

So any sort of material update you can give on both the production launches, the three big ones over ’27, ’28, but really maybe more on the robo relationship would be super helpful.

Amnon Shashua (Founder & CEO)

Okay, thanks, Chris. That’s a big question. Our relationship with the VW Group is defined first by our shared rich history of product launches and then by the nominated production programs we’re executing together. So let’s go over them. The base ADAS and surround ADAS with VW brand. We have SuperVision led by Porsche, we have SHO4 led by Audi, and we have the ID Buzz program with MOIA. Now, all programs are now running on production hardware. Production-intent vehicle platforms — software hardening is the primary focus — and designated vehicle platforms are intended to launch in the 2027, 2028 multiple vehicle models.

So all of that is tracking well. Now, I would say that OEMs continuously evaluate future architecture. That has always been the case and it’s really a separate matter from the programs we’re delivering now. We cannot comment on partners, internal processes, or media reports about them. But, you know, CARIAD was always there, even when we announced back in 2022, 2023 our programs with Porsche and Audi. You know, part of the announcement by the Volkswagen Group was that there is CARIAD and CARIAD is part of the plan for future autonomy, and CARIAD is undergoing a phase of replacing their partner.

It used to be Bosch, now it’s going to be someone else. That someone else cannot be Mobileye because that’s the whole point of CARIAD — to be a second source for Volkswagen Group’s ambition in going into autonomy. So that hasn’t changed. As for the program with MOIA, our focus is executing and maturing the technology to drive out on the roughly 100 ID Buzz prototypes that are deployed in multiple geographical locations and complete the preparations to be driver-out ready. The stack and hardware are tracking well. We continue to see steady progress in data accumulation for validation and key performance metrics. All of that is tracking well. Beyond that, we cannot comment on speculations and reports concerning our partners.

That’s super helpful.

Chris McNally (Analyst at Evercore ISI)

And is it fair — I always do the paraphrase — that basically if CARIAD is continuing, it shrank over time, but basically anything CARIAD works on internal for VW would be for program production awards in coming years, which would be more your launches in the 30, 2030 type timeframe. Is that fair? Meaning they’d have to win it on their own merits. But obviously that’s something that’s a little bit longer-dated.

Amnon Shashua (Founder & CEO)

That’s correct. It does not reflect on the programs we have. Programs we have are slated for production. We’re working on those production programs with production vehicles, hardening software as I said. And then there is kind of the normal nominations of future architectures. And CARIAD was always in the picture. That means nothing new here, only they are selecting a new partner. Thanks, Chris.

Chris McNally (Analyst at Evercore ISI)

Thanks. No, yeah, just on the AV side, on the dual track, go-it-alone strategy, is it fair to say that you would look for partners to do the physical infrastructure side, you know, the depot, the own, the vehicles. There’s a host of players, you know, doing that for other AV players. But when you’re going alone on the vehicle side that you would have somewhat on the physical infrastructure side.

Amnon Shashua (Founder & CEO)

Oh, go ahead, go ahead, Chris. Yeah. Hi, Chris. The answer is yes. And we are working with partners for, let’s say, the operational, the infrastructure, the day-to-day management, warehouses, parking lots, all the low-level and mid-level maintenance work that relates to the fleets themselves. Right now our focus is on unfettered and scripted — basically to put the vehicle platform with our self-driving system as a ready platform in 2027, and then starting in one city and then gradually over the course of the next few years scaling that as the entire ecosystem matures.

I would say.

Chris McNally (Analyst at Evercore ISI)

Perfect. Thanks so much.

Amnon Shashua (Founder & CEO)

Thanks, Chris.

OPERATOR

Next question. Our next question is from Dan Levy with Barclays. Please proceed with your question.

Dan Levy (Analyst at Barclays)

Hi, good afternoon to you. Thanks for taking the questions. I wanted to go back to—I know we’ve talked in the past about the China dynamics and I think we’ve been surprised by how well you’ve been holding share. And I know that, you know, some of your competitors in China are making the claims that they do have ways to export their products through various JVs. And so can you just talk to, you know, as we continue to see this rise of China exports and competitors like, you know, Horizon and Momenta that are going to make the claim that they can play on those exports as well, why you think you can continue to hold a good share on the exports?

Amnon Shashua (Founder & CEO)

Right. So I think I don’t want to speculate too much in the future, but these claims are not new. I think we’ve been facing these claims by the Chinese competitors at least for four years now. And one of the reasons why we remain a steady and healthy market share with the Chinese OEMs that are exporting—of course, regulation compliance, but that’s not the only reason. I think that there is also a standard of performance that the European, for example, the European consumer is expecting when it comes to driver-assist systems.

And by and large most of the driver-assist features that are available in Europe by different OEMs are provided by Mobileye. And I think that for the Chinese OEMs, as they create a market share for themselves in Europe as their next big export market, it is very important for them to come with the most credible, high-performing driver-assist offering to the European consumer. So that’s basically what we’ve seen, and that’s not true just for Europe. I think it’s also affecting other markets. Although the US market maybe for the Chinese OEMs is not the primary focus today, but even Asian markets outside of China, and Asia Pacific markets, South America, which is also coming up with new regulation, and India and also in Europe. I think, again to summarize it, I think that we are confident because of the results so far, and we’ve had multiple decision-making cycles by now by the big Chinese OEMs and we have been selected repeatedly in those.

I think we have a lot of merits.

Dan Levy (Analyst at Barclays)

Great, thank you. Second question is perhaps you can talk to the two cloud-enhanced wins, which I know you said those follow the Stellantis win. And I know your commentary implies that this should drive ASP accretion, but maybe you could just talk to how wide an adoption we see of those, and are those potentially gateways to getting further advanced content wins with these automakers?

Amnon Shashua (Founder & CEO)

Yeah. So the way to look at this is, this is an upgrade for existing EyeQ6 Lite products with these OEMs. So basically they’ve launched EyeQ6 Lite-based ADAS products, and then once those became mature and kind of proven in production, there was an incremental upgrade with cloud-enhanced ADAS, which is a more, I would say, straightforward execution project as it basically uses the same chip, it uses a lot of the same hardware, makes mostly software validation work, and they can offer better features, better performance on these features at very affordable cost.

So I think for those OEMs, it’s a pretty sensible decision and definitely it improves our long-term relationship with these OEMs and it helps us to add, bring new technologies to these OEMs and kind of show what else we can do with these technologies. And the next logical step is to surround data with EyeQ6I and so on. So it is a kind of building a bridge.

Dan Gause (Investor Relations)

Thank you, Dan.

Dan Levy (Analyst at Barclays)

Thank you.

Dan Gause (Investor Relations)

Next question please.

OPERATOR

Our next question is from Edison Yu with Deutsche Bank. Please proceed with your question.

Edison Yu (Analyst at Deutsche Bank)

Great. Thank you very much for taking our questions. First, I want to follow up on the internal robotaxi efforts. I think the idea here is obviously you have a lot more control over what’s going on. So do you have a sense or can you provide a sense on kind of the biggest milestones for next year? And also what do you envision as the form factor for that robotaxi? Because we’ve obviously seen lots of different vehicles now on the road, even in places like LA.

Amnon Shashua (Founder & CEO)

The plan is to get better control of the life cycle of the product first. Better control of the definition of the product, better control of updating the software, selecting the hardware. By owning the full stack, it gives us control to move faster and make decisions faster. I’ll give an example. One of the things that we are looking, kind of future-facing, is considerable cost reduction of the robotaxi platform. Today there is kind of a standard of how a robotaxi looks like in terms of the number of lidars and radars and cameras.

It’s quite expensive. But when we are looking into the future, say two, three years from now, we believe that there is room for a considerable cost reduction, and we want to use our robotaxi activity to experiment there. We invested a lot in imaging radars. We think we have the best imaging radars today on the planet in terms of the resolution, the dynamic range, the side-lobe detection, and thinking of ways to reduce the sensor set and the compute cost bill to create really cost-optimized robotaxis.

So this is something that, if we don’t control the entire product cycle, it will be very difficult to have those experiments. So that was kind of the background. Now the plan for 2027 is to deploy 100 vehicles and be able to control the full cycle. Not only the self-driving system, but also the vehicle platform, the uplifting of the system onto the vehicle, the operations, the fleet management system, the customer-facing application, the teleoperation, the back-office activity—all of that on 100 vehicles in one city in 2027. We are thinking of the Orlando area, Miami next.

So this is what is planned for 2027. In parallel, we are working with a number of OEMs to define the Level 4-ready vehicle platform that we can buy at scale for expansion from 2028 and beyond.

Edison Yu (Analyst at Deutsche Bank)

Thank you. Just a follow up on Menti. I know you mentioned in the final stages of the design, I guess could we expect this to be ready by CES, and kind of somewhat related to that, I’m sure you saw there was an acquisition made by AMD of World Labs. Any thoughts on kind of the importance of something like that? Again, what did you mention about roadmaps? Just any thoughts on the need to have something like that in house or the importance of this world model or spatial model?

Amnon Shashua (Founder & CEO)

We are developing world models, that’s part of our stack. We plan to bring V3.2 on stage for the CES and it will perform some interesting end-to-end tasks. Not just locomotion, but actual useful tasks. So we plan to bring that to the CES. But the version 4 should be built around the end of Q1, 2027 more or less. And the plan for kind of building a few hundreds of robots for production is the plan for 2028. Thank you, Edison. Next question please.

OPERATOR

Our next question is from Joseph Spak with UBS. Please proceed with your question.

Joseph Spak (Analyst at UBS)

Thank you. I wanted to circle a little bit back to Chris’s question, but maybe broaden it out a little bit from the VW Group. Because I know you’ve always sort of talked about the view that customers may seek multiple or internal solutions. And as you sort of indicated, I don’t think this really sort of changes anything about your midterm opportunity. But it does feel, at least from the outside, like there’s been a little bit of a sea change and now OEMs are thinking about solutions for beyond and sort of the next generation.

So maybe you could just sort of give us a little bit of the lay of the land and some of the conversations you’re having with customers for the next generations and how that could impact Mobileye Global positively or negatively beyond the current awards.

Amnon Shashua (Founder & CEO)

Thank you for your question. I would say that our strategy over this period has been very deliberate. One can argue whether it was the right strategy or not, but this is our strategy. We put all our resources and focus into bringing four new platforms to production simultaneously with our leading customer, the Volkswagen Group, and that instead of building Demoware to use it for business development like some of our competitors are doing. So when you have Demoware you can move fast, you can show things that are very impressive.

But then there is the uncertainty of going from demo to production that people usually don’t put sufficient weight or importance to it. So we believe that scaling a proven production-grade product is a stronger position than productizing across many customers at once. And this trade-off is the fewer new nominations in the near term and more durable, sustainable growth in the long term. And we are reaching the point in which at least our first production, the SuperVision with Porsche, is coming to a maturity somewhere early 2027. That would put us in a better position of demonstrating already production-worthy system rather than something that is half-baked. Now we could have focused on Demoware and I’m sure we would have done very, very impressive demos. But, you know, we put our focus on production, production programs. And when you are working on production it’s not that easy to go and demonstrate because in a production not everything is under your control.

You know, maturity of other sensors are not in your control, the application layer is sometimes not in your control. There are all sorts of requirements from the carmaker that some of them are coming from other suppliers. So being able to demonstrate the best performance of our system when we are in the midst of production is very problematic. And we didn’t put resources on demo. But I believe that period is coming to an end and during 2027 we can be back on to doing the business development on the advanced programs by showing real production systems.

And that would put us in a good position on the conversations of the next advanced Level 2 programs and Level 3 programs that OEMs are discussing.

Joseph Spak (Analyst at UBS)

Thank you for that answer. As a second question and maybe just something on the full-year guidance. I know it was raised essentially by what you beat expectations for in the third quarter, but there was also, you know, you did have the 7 million memory pass-through. I’m assuming it’s probably at least a similar number in the fourth quarter. So I guess does that mean there’s something underlying has changed? Maybe I missed it. I didn’t hear sort of the full-year unit number, or was memory sort of always considered in your prior outlook?

Can you just clarify that? Thank you.

Dan Gause (Investor Relations)

Thank you Joe. Next question please.

OPERATOR

Our next question is from Shreyas Patil with Wolfe Research. Please proceed with your question.

Shreyas Patil (Analyst at Wolfe Research)

Great, thanks so much. Maybe picking up on the last question, I’m just curious how we think about memory price and the pass-through as we go into next year. Memory prices industry-wide are expected to increase by—even more in ’27 and you are expecting a bigger step up in SuperVision shipments as well. So just curious how we should think about that at a high level.

OPERATOR

Next question please. Sure thing. Our next question is from Mark Delaney with Goldman Sachs. Please proceed with your question.

Mark Delaney (Analyst at Goldman Sachs)

Yes, thank you very much for taking the question. I was hoping to better contextualize the company’s growing opportunity around an ASP uplift for L2-plus vehicles and with Mobileye’s outlook to be about a 20% CAGR for L2-plus vehicles through the end of the decade. And that volume outlook coupled with the awards you’ve had in surround ADAS and the growing momentum you’re speaking about now in REM. Can you help us understand what that means for where a Mobileye ASP per IQ chip may trend over the next two to three years?

Dan Gause (Investor Relations)

And this is Dan. I just wanted to make a couple final points because it’s an important question. So, you know, the L2-plus segment is the fastest growing segment in ADAS in North America and Europe over the next several years based on Mobileye Global projections. And these projections have really been rising. So it’s a very kind of strong segment that today we have a good presence, but with essentially normal base ADAS products as part of a system.

These wins that we’ve had over the last year indicate that our content and our positioning in the next generation of L2-plus is growing, and I think we wanted to make the point that if you look specifically at single-chip type of ASPs, which have been kind of slowly eroding the last couple of years for reasons that Mehran mentioned, we have a good opportunity to turn that around with surround ADAS at two to three times the ASP of base ADAS and cloud-enhanced ADAS that has a gross profit per unit that is roughly similar to surround ADAS.

Thank you. Next question please.

OPERATOR

Our next question is from George Gianarikas from Canaccord Genuity. Please proceed with your question.

George Gianarikas (Analyst at Canaccord Genuity)

Hi everyone. Thank you for taking my questions. You mentioned you decided not to focus on demo-ware, but I’m really curious as to whether or not, with Tesla’s recent FSD milestone announcements, 75% take rates in North America, have you observed any acceleration in customer inbound and interest in adopting advanced autonomous solutions?

Amnon Shashua (Founder & CEO)

Well, I’ll tell you, when we do internal testing and driving expedition with the current program that we have with the SuperVision, which is FSD-like, the performance is super, super good. I believe that when we come out in production, it will not be that far from a Tesla FSD performance — without the parking or not doing the parking there. So I believe that when the time would come that we can really demo that vehicle, when we finish hardening the software, burning down all the tickets, and maturing the sensor maturity and everything, I think we’ll be in a very, very good position. And Tesla’s very high take rate of 75% is a very, very good tailwind that will enable us, when the time comes, to get more attention from OEMs who see this very, very big take rate of Tesla.

George Gianarikas (Analyst at Canaccord Genuity)

Thank you. And maybe as a follow up, as you start to launch your robotaxi fleet next year, how are you modeling and thinking about network operating center headcount and vehicle-to-operator ratios? I’m just sort of curious as to how that should start and how you expect that potentially to come down over the next several years. Thank you.

Amnon Shashua (Founder & CEO)

It always starts with one operator per one vehicle at the beginning. Then later it starts reducing. We talked about lancing certain technologies of VLMs to enable to reduce the attention of a tele-operator, to allow more vehicles per tele-operator, and when the time comes we’ll integrate it into our stack.

Dan Gause (Investor Relations)

Thank you, George. Next question please.

OPERATOR

Our next question is from Colin Rusch with Oppenheimer and Company. Please proceed with your question.

Colin Rusch (Analyst at Oppenheimer and Company)

Thanks so much. Guys, could you talk a little bit about the thought process in making the investment in Beep and how you see the public transport market evolving as a demand creator for some of your self-owned vehicles. Great. And then in terms of the evolution of the sensor suite and the cost reduction, as you look at the introduction of colored lidar into the market, is there a real opportunity for you guys to evolve the sensor suite and simplify it with that sort of technology out in the market?

Amnon Shashua (Founder & CEO)

So our bet is on — first, the basics is always cameras — but on top of cameras, our bet is on imaging radars. And we invested for the past seven years on developing very capable imaging radars that can take the heavyweight of redundancy. So our belief is that long term you would not need the lidars. It’s only cameras and imaging radars. That’s our bet. How you know, the time horizon for that is still unknown, but that is our bet.

Colin Rusch (Analyst at Oppenheimer and Company)

Okay, thanks so much guys.

Dan Gause (Investor Relations)

Thank you, Colin.

OPERATOR

Our last question will be from Andrew Percoco with Morgan Stanley. Please proceed with your question.

Andrew Percoco (Analyst at Morgan Stanley)

Thanks for squeezing me in here. Just two quick follow-up questions and I’ll just ask them at the same time. So first on the ASP commentary, super helpful, but if I can just kind of double click around kind of the cadence of that. It sounds like a lot of the surround and cloud-enhanced ADAS is more of a maybe 2028 story in terms of when production actually starts to kind of kick in and drive meaningful volume. So should we generally expect 2027 ASPs to kind of follow the trend that we’ve seen in 2026 before you get that benefit obviously in 2028 and 2029 on some of the higher-end surround and cloud-enhanced solutions?

And then my second question is just around investment needs for 2027. Obviously moving ahead with Mentee and your own robotaxi business, do you expect a notable uptick in R&D or more broadly OPEX as we get into 2027 to support some of those development goals? Thank you.

Amnon Shashua (Founder & CEO)

Yeah. So 2027, I mean, you need to bear in mind that this year we had, as I mentioned, headwind for ASP for China OEM and also the second chip that we didn’t sell in 2025 and we’re selling in 2026. So we had roughly, I think almost $2 ASP decrease in 2026. So 2027 we expect to be more flat. There might be some moderate decrease as relates to, again, software content and demand for higher bundles versus lower bundles. But we are not expected to see the same headwinds as we experienced in 2026.

Dan Gause (Investor Relations)

I think the second question was.

Amnon Shashua (Founder & CEO)

Oh, I’m sorry, go ahead, Dan.

Dan Gause (Investor Relations)

I think there was a question around investments into 2027.

Amnon Shashua (Founder & CEO)

So there are going to be some investments in 2027, but we’re not ready to talk about them at this point. But it’s not something major. Planning to buy GPU farms, all sorts of investments. But you know, we’ll talk about them when the time comes to talk about 2027.

Dan Gause (Investor Relations)

Thank you, Amnon.

OPERATOR

We have reached the end of the question and answer session. I would like to turn the floor back over to Dan Gause for closing comments.

Dan Gause (Investor Relations)

Thank you, Sam. Thanks everyone for joining our earnings call. We will have another one in January. Thank you so much. Talk to you soon.

OPERATOR

This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.

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