Intel’s (INTC) automotive unit Mobileye plans to launch electric self-driving shuttles in the U.S. starting in 2024. It has teamed up with Benteler EV Systems and Beep on the project.
The project aims to address urban transport challenges such as road safety, road congestion, and mobility access and is aimed at first- and last-mile use cases. In the first year of deployment, a couple hundred vehicles are expected to be released to the market, with the goal of reaching between 10,000 and 15,000 globally.
Collaboration of Experts
Mobileye will provide the self-driving systems for the shuttles. The Intel unit is recognized as a leader in autonomous driving solutions. Its Mobileye Drive platform has been adopted to power autonomous vehicles in countries like the U.S., China, Japan, Germany, Israel, and France. Benteler EV Systems will build the self-driving shuttles in the U.S. Beep’s operations systems, technology, and services will support Mobileye and provide mobility services.
The partners expect to draw on their years of experience in autonomous solutions to make the shuttle project a success. While Mobileye is an expert in self-driving technology, Benteler is an expert in building platforms for electric vehicles. For its part, Beep has run many autonomous vehicle test programs and its efforts have helped replace vehicles running on fossil fuels with those powered by cleaner electric vehicles.
Mobileye’s vice president of Mobility-as-a-Service Johann Jungwirth commented: “The full benefits of autonomy can only be reached with scale. Working with Beep and Benteler, Mobileye aims to mass-produce first- and last-mile self-driving mobility solutions that will enable the convenient, accessible and safe movement of people across North America.”
Intel plans to distribute a quarterly dividend of $0.37 per share on March 1. Currently offering a yield of 2.95%, Intel ranks among the highest yielding stocks in its sector, where the average yield is 0.69%.
In January, Citigroup analyst Christopher Danely reiterated a Hold rating on Intel stock but lowered the price target to $55 from $58. Danely’s reduced price target suggests 15.59% upside potential. The analyst noted that Intel issued a downbeat outlook for Q1 2022.
Consensus among analysts is a Hold based on 6 Buys, 9 Holds, and 5 Sells. The average Intel price target of $55.11 implies 15.83% upside potential to current levels.
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