Under one umbrella, Mobileye can impart myriad benefits, from energy savings through efficient distribution of movement to reducing traffic incidents caused by human errors, which impose both mental health and economic costs. With the potential ability to promote wide-scale positive outcomes, the tech firm’s public market debut may attract substantial buzz.

Based in Israel and currently operating as a subsidiary of semiconductor giant Intel Corporation (NASDAQ:INTC), Mobileye develops advanced driver-assistance systems. However, the company is best known for its research and progress in autonomous driving solutions. Last year, Mobileye introduced its Level 4 self-driving system. For reference, the different stages of autonomy are listed below:

• Level 0: No driver-assistance systems are available, thus making the human operator 100% responsible for controlling the vehicle.
• Level 1: A relatively rudimentary assistance phase, the underlying system supports one driving task, such as steering, accelerating or braking.
• Level 2: A step higher from Level 1 assistance, the system performs several tasks, though the driver must maintain vigilance at all times.
• Level 3: Providing a more intuitive sense of the word autonomy, the system controls the vehicle on predetermined routes, though the driver must be prepared to take over should circumstances go awry.
• Level 4: Performing all the functions associated with driving, the system can relieve the driver to perform other activities, though the human operator can take back the wheel.
• Level 5: Representing complete autonomy, the system requires zero input from a human operator, theoretically allowing maximum freedom and efficiency.

• Automated driving: Leveraging a camera-centric configuration, Mobileye is distinct in that its system can deliver autonomous driving through optics or radar and lidar, thus enabling true redundancy. Stated differently, if the optics fail, the radar/lidar system can kick in.
• Advanced driver assistance systems: Essentially providing a building block for future advances in autonomy, Mobileye’s driver assistance systems have been integrated in more than 60 million vehicles, facilitating practical safety features while delivering invaluable data for researchers as they engineer input-free platforms.
• Mapping: In another effort to catapult redundancies, Mobileye leverages crowdsourcing mechanisms to support its Road Experience Management (REM) system, an initiative to generate precise localization of vehicles relative to road boundaries and intersections under all conditions.

According to a Reuters report, Mobileye confidentially filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC) on March 7, 2022, setting the stage for what the news agency terms “one of the biggest stock market flotations of the year.”

Certainly, if the company manages to attract the buzz its biggest supporters are hoping for, the debut would represent a welcome change of pace for the IPO scene. Following blistering records for new listings in 2020 and 2021, this year has gotten off to a slow start. With both soaring consumer inflation and open warfare in eastern Europe weighing on investor sentiment, the IPO calendar has been understandably barren.

As an alternative, it’s possible that autonomous driving systems — which can integrate with both combustion and electric-powered vehicles — can be ready prior to a mainstream pivot to EVs. If so, autonomy can foster (through algorithms prioritizing efficiency) eco-driving modes that can reduce energy consumption, per the University of Michigan.

Combined with other benefits like improved safety and traffic flows, autonomous systems can deliver more productive solutions than merely switching to EVs. Still, the skyward explosion of the money supply implies a non-zero probability risk of an economic recession, a factor that has undoubtedly kept many enterprises from planned new listings.

Specifically, Bank of America Corp. (NYSE:BAC) analyst Vivek Arya stated that Intel’s subsidiary branching off as its own public entity could unlock value for the chipmaker, which has seen its INTC shares struggle. Though Arya maintained an underperform rating for Intel, he raised his price target for INTC to $50 from $45.

On the other hand, some analysts have brought up concerns that Mobileye could be the guinea pig of the post-Ukraine-invasion IPO arena. If the new listing is successful, it could help mobilize sentiment and momentum for what has been a hot market subsegment. But a failure or a delay in the proceedings could make the market grow cold, thus heaping negativity atop negativity.

With millions of Americans still working from home as part of COVID-19 mitigation measures, the intuitive assumption is that this dynamic will spark a dip in traffic incidents. However, according to the U.S. Government Accountability Office, traffic fatalities have actually increased.

Irrespective of the reasons, road crashes impose a hefty economic cost — up to 2% of gross national product in high-income countries. Naturally, Mobileye’s autonomous driving and safety systems can deliver positive health outcomes and conspicuous cost savings for underlying economies.

Because of its early stage profile, investors will likely have two options to participate in the Mobileye IPO. First, you can acquire shares at the open, necessitating knowing how to buy stocks. Second, you may be able to apply for a pre-IPO acquisition, with details below.

Buying at the open comes at the possible disadvantage of the IPO pop. However, by opening an account with Freedom Finance, you can acquire Mobileye shares at their initial offering price. Be aware, though, that IPOs can also drop below their initial price, so risk management is a must.