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SHANGHAI - ECARX Holdings Inc. (NASDAQ: ECX), a global mobility technology company, and AMD (NASDAQ:AMD), a leader in high performance and adaptive computing, have announced the first deliveries of the Lynk & Co. Z10 luxury sedan. The vehicle features ECARX’s Makalu computing platform, which is enhanced by AMD Ryzen Embedded V2000 processors and integrated AMD Radeon Graphics.
The Z10, which made its debut in Sweden in June 2024, represents a significant achievement in the automotive digital cockpit space. The Makalu platform is noted for its advanced 3D graphics, security features, and entertainment capabilities. Its state-of-the-art processing power is designed to support future software enhancements effectively.
ECARX's Cloudpeak software stack is critical in maximizing the performance of the AMD Ryzen Embedded V2000 processor. This modular platform offers a customizable and intelligent system for infotainment and advanced driver assistance systems (ADAS) that are currently available in the market. It integrates navigation instructions from Flyme Auto and provides hands-free assistance, among other features.
Ziyu Shen, Chairman and CEO of ECARX, expressed confidence in the Z10's launch as a milestone for the company’s collaboration with AMD, aiming to expand the reach of their solutions in the automotive sector. The success of the Z10 follows the company's previous work with Lynk & Co. on the 08 and 07 models, underscoring the market's recognition of their adaptable and effective technologies.
Founded in 2017 and listed on NASDAQ in 2022, ECARX has over 1,900 employees and collaborates with various automakers, including FAW and Dongfeng Peugeot-Citroën. To date, ECARX products are in over 6.9 million vehicles globally.
The information provided in this article is based on a press release statement. It should be noted that forward-looking statements in the press release are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially. ECARX has made filings with the U.S. Securities and Exchange Commission that outline these risks and uncertainties.
In other recent news, ECARX Holdings Inc. announced a partnership with software solutions provider MulticoreWare Inc. The collaboration aims to enhance the performance of intelligent driving systems, with optimization efforts already implemented in Lynk & Co 08 EM-P vehicles. This partnership is a strategic move to innovate and enhance intelligent driving technologies for the automotive sector.
On the financial front, ECARX reported a 31% year-over-year increase in revenue for Q2 2024, reaching RMB1.3 billion. The company's technology is now installed in over 6.9 million vehicles, and it continues to expand its partnerships and product portfolio. Despite a decrease in software license revenue and an increase in operating expenses, ECARX remains focused on driving growth, optimizing costs, and achieving profitability.
In addition to these developments, ECARX has secured five new design wins, including a notable European automaker, and has strengthened partnerships with Tencent (HK:0700) Smart Transportation and DXC Luxoft. The company's gross margin stood at 23%, and adjusted EBITDA loss was RMB210 million. These recent developments indicate ECARX's strategic efforts to expand its global presence and enhance product offerings.
InvestingPro Insights
ECARX Holdings Inc. (NASDAQ: ECX) is making waves with its innovative Makalu computing platform, as seen in the recent launch of the Lynk & Co. Z10 luxury sedan. Despite the technological advancements and collaborations, ECARX's financial data reveals a complex picture. With a market capitalization of $588.24 million and a striking revenue growth of 29.17% in the last twelve months as of Q2 2024, ECARX shows potential in scaling its operations. However, the company's price-to-earnings (P/E) ratio stands at -3.57, reflecting its current lack of profitability.
InvestingPro Tips for ECARX highlight that the stock typically experiences high price volatility, which could be of interest to investors looking for dynamic trading opportunities. Additionally, ECARX's position as a prominent player in the Automobile Components industry suggests a strategic footprint in a competitive market. On the other hand, short-term obligations exceeding liquid assets may raise concerns about the company's immediate financial health. For those considering an investment in ECARX, it's worth noting that analysts are not anticipating the company to be profitable this year, and it has not been profitable over the last twelve months.
Despite these challenges, ECARX has seen a strong return over the last three months, with a price total return of 59.63%, indicating a possible turnaround or market reevaluation of its prospects. This performance contrasts with a significant price decline over the last year and five years, emphasizing the stock's volatility and the importance of timing in investment decisions. It's also important to note that ECARX does not pay a dividend to shareholders, which may influence investment strategies focused on income generation.
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