Mobileye Global Inc. (NASDAQ: MBLY) has outlined a broadening growth agenda at CES 2026, emphasizing expansion beyond its established Advanced Driver Assistance Systems (ADAS) business into promising new sectors including robotaxis and robotics for industrial automation. The company revealed a pivotal $900 million acquisition of Mentee Robotics, which CEO highlighted as a critical move into 'physical AI' applications involving autonomous systems in operational environments such as factories and fulfillment centers.
In parallel with this robotics venture, Mobileye presented its strategic vision for robotaxi deployment, most notably through a high-profile collaboration with Volkswagen-backed MOIA. According to company statements, this partnership is on track to develop a Level 4 autonomous vehicle, ready for release by February 2026, with subsequent plans to commence a driverless ride-hailing service in U.S. cities in the latter half of 2026.
Strategic Acquisition Marks Entry into Industrial Robotics
Mobileye’s acquisition of Mentee Robotics signals a new operational dimension focused on physical AI. JP Morgan analyst Samik Chatterjee, who maintained a Neutral rating on Mobileye, identified the deal as a strategic step enabling Mobileye to leverage autonomous driving technology in broader robotic applications.
The initial phase targets structured environments such as warehouses and manufacturing facilities. Production of robotics solutions for these sectors is slated to commence around 2028. In a longer timeframe, the company envisions deploying autonomous systems in unstructured environments including residential settings by the end of the decade, potentially expanding the scope of physical AI far beyond current applications.
Robust Core Automotive Business and Expanding OEM Partnerships
Despite diversification efforts, Mobileye’s core ADAS business continues to demonstrate strong momentum. The company secured approximately 95% of Request For Quotations (RFQs) with its leading 10 automotive original equipment manufacturer (OEM) clients slated for 2025, reinforcing its dominant position in this segment.
Additionally, Mobileye has expanded its OEM collaborations by onboarding new partners such as Volvo and Subaru, reflecting ongoing confidence from major automakers in its technology. The firm also projects a cumulative design pipeline valued at $24.5 billion extending through 2033, largely driven by recent contract awards over the past three years. Mobileye's semiconductor chips now equip an estimated 230 million vehicles worldwide, underscoring widespread adoption.
Robotaxis and Autonomy: Toward Commercial Launch
Building on the core business, Mobileye is advancing its autonomous driving programs with robotaxis as a key focus area. The Volkswagen and MOIA partnership is central to this strategy, targeting development of vehicles capable of Level 4 autonomy by early 2026. Following vehicle readiness, Mobileye aims to initiate a driverless transportation rollout in U.S. markets during the second half of that year, with plans to expand to multiple cities subsequently.
Efforts are also underway to reduce the costs of systems supporting advanced driver assistance, while refining higher-level autonomy functions to achieve near-zero reliance on human intervention. These enhancements are supported by Mobileye’s simulation-driven autonomy software stack, which allows iterative validation and optimization on virtual platforms.
Market Response and Analyst Takeaways
At the time of reporting, Mobileye’s shares were up 1.52%, trading around $12.36, indicating positive market reception to the company’s forward-looking plans presented at CES.
JP Morgan analyst Samik Chatterjee summarized Mobileye’s CES announcements as presenting a clear and diversified growth roadmap encompassing core ADAS dominance, robotics expansion, and robotaxi commercialization. However, his Neutral rating reflects a balanced outlook given the uncertainties typical of emerging segments.