Mobileye (NASDAQ:MBLY) Shares fell by almost 24% on Thursday after the company lowered its revenue forecast for the year due to reduced shipments of EyeQ and SuperVision.

The Israeli company, which develops autonomous driving technology and advanced driver assistance systems, now expects full-year revenue to reach $1.6 billion to $1.68 billion, compared with the previous forecast of $1.83 billion to $1.96 billion. Revenue consensus Estimate is $1.87 billion.

Mobileye president and CEO Amnon Shashua said, “The larger-than-expected easing of business conditions in China (affecting the entire industry) will likely lead to challenges in the second half of the year.”

Meanwhile, Bank of America reiterated his Rated “poor” on Mobileye.

Analysts noted that despite Mobileye’s leading position in the ADAS market, there is significant uncertainty about the company’s growth and earnings prospects, in part due to its latest forecasts and the macroeconomic environment in China.

In addition, the markets in which Mobileye operates are likely to become increasingly competitive, and OEMs have long used multiple suppliers.

Mobileye said in its financial results release that the near-term environment has recently become more challenging, primarily due to the situation in China.

Mobileye added that it saw significant reductions in second-half 2024 production estimates for many global OEM customers, which reflected its own expectations.

Additionally, there was a decline in orders for the second half of 2024 from Chinese OEMs compared to what these customers indicated according to Mobileye’s last update.

The company also said the delay in bringing a huge number of ADAS systems to market outside China is an additional obstacle.

Mobileye has lowered its second-half 2024 EyeQ volume expectations by nearly 3.5 million units, which in turn impacts its outlook for the remainder of 2024.

SuperVision volume expectations for 2024 have also been lowered, primarily due to fresh tariffs in the U.S. and Europe, which are expected to enhance deliveries of SuperVision-equipped vehicles in those markets; and reduced volume expectations in China due to uncertainty about market dynamics and lowered customer forecasts.

Second quarter metrics:The company’s second-quarter revenue fell about 3% year over year to $439 million, while adjusted earnings fell 44% year over year to $0.09 per share. However, both the top and bottom lines beat estimates.

(This story has been updated with stock price changes.)