Mobileye (Mobileye (MBLY)) has been known as the company that supplies the brains for self-driving cars. But now it wants to own the car, too — or at least the ride-hailing service that uses them.

Shares of the Intel-backed company rose Tuesday after it announced plans to launch its own robotaxi business, moving beyond just selling autonomous driving technology to automakers and into operating a full-blown ride-hailing service. The gain came even as tech stocks took a hit: the Nasdaq Composite fell 1.36%, the S&P 500 dropped 0.31%, and the Technology sector slid 1.9%.

From Supplier to Operator

Mobileye said it will launch a vertically integrated robotaxi business, deploying an initial fleet of about 100 fully driverless vehicles in a major U.S. city in 2027. The goal is to scale to roughly 17,000 vehicles over the following five years.

The new operation will combine Mobileye's autonomous driving system — called Mobileye Drive — with Moovit's mobility platform, which includes consumer apps, trip planning, fleet management, and teleoperation capabilities. Moovit, which Mobileye acquired in 2020, already serves more than 1.7 billion users across over 3,500 cities in 112 countries.

CEO Prof. Amnon Shashua was careful to frame this as an expansion, not a pivot. "This initiative is not a replacement for our existing partnerships; it is an extension of them," he said. Mobileye's core business of supplying self-driving tech to automakers and mobility providers will continue alongside the new robotaxi service.

Mobileye noted that more than 230 million vehicles worldwide have been built with its technology. Intel Corp. (Intel (INTC)) remains the majority owner.

What the Charts Say

Mobileye's stock has had a rough year, down 36.8% over the past 12 months. But there are some signs of stabilization.

The stock is trading 7.6% above its 50-day simple moving average of $9.06 and 11.5% above its 100-day SMA of $8.75. However, it remains 9.1% below its 200-day SMA of $10.73, meaning the longer-term downtrend is still intact.

The relative strength index sits at 48.87, neutral territory — not overbought, not oversold. On the bright side, the 20-day SMA has moved above the 50-day SMA, a short-term bullish signal. But the death cross from August 2025, when the 50-day SMA crossed below the 200-day SMA, still hangs over the longer-term outlook.

Traders are watching resistance near $11.00, which aligns with the 200-day moving average. Support sits around $8.50, near the 100-day SMA.

Price Action

Mobileye shares were up 2.47% at $9.77 at the time of publication on Tuesday, according to market data.