ECARX boosts share repurchase program to $40 million

SHANGHAI - ECARX Holdings, Inc. (NASDAQ:ECX), a global provider of automotive technology, announced today that its board of directors has approved an increase in its share repurchase program. The announcement comes as the stock trades near its 52-week low of $0.94, having declined about 49% over the past year. According to InvestingPro analysis, the stock's RSI suggests oversold conditions, potentially making this timing strategic for buybacks. The company, which specializes in creating technology for next-generation smart vehicles, will add an additional $20 million to the program, bringing the total authorization to $40 million. The repurchase program, originally adopted on December 20, 2024, has also received an extension through March 31, 2026. With a current market capitalization of approximately $371 million, this represents a significant commitment to shareholder value, though InvestingPro data indicates the company faces challenges with cash burn and debt management.

Founded in 2017 and listed on NASDAQ in 2022, ECARX has expanded its workforce to over 1,900 employees across 12 major locations, including China, the UK, the USA, Sweden, and Germany. Its technology is currently integrated into more than 8.1 million vehicles globally, contributing to an impressive revenue growth of 18.3% in the last twelve months. Discover more detailed insights about ECARX's growth trajectory and 15+ additional ProTips with an InvestingPro subscription.

The company's technology portfolio encompasses system on a chip (SoC), central computing platforms, and software, aiming to enhance the user experience in smart vehicles while reducing complexity and costs. As the automotive industry shifts towards electric vehicle architectures, ECARX's full-stack solutions are positioned to meet the evolving demands of automakers. Despite current challenges, analysts maintain a bullish outlook, with price targets suggesting significant upside potential from current levels.

This press release contains forward-looking statements that involve risks and uncertainties, including statements about the company's financial condition, growth strategies, and market performance. These statements are based on current management beliefs and expectations and are subject to change. For a detailed discussion of these risks and uncertainties, interested parties can refer to ECARX's filings with the U.S. Securities and Exchange Commission.

The information in this article is based on a press release statement from ECARX Holdings, Inc.

In other recent news, ECARX Holdings Inc. reported a 4% year-over-year increase in revenue for the fourth quarter of 2024, reaching RMB 1.9 billion, and achieved EBITDA breakeven. The company's full-year revenue rose by 18% to RMB 5.6 billion, highlighting its solid position in the automotive technology sector. ECARX also announced a public offering of 25 million Class A ordinary shares priced at $1.80 each, with Deutsche Bank AG and China International Capital Corporation leading the underwriting. The proceeds are intended for research and development, establishing overseas supply chains, and general corporate purposes. Additionally, ECARX's advanced computing platform and software stack are now powering the newly launched Hongqi Tiangong 06 all-electric SUV, as part of its strategic partnership with FAW Group. The company is also set to expand its global customer base with new projects, including a milestone partnership with Volkswagen Group. These developments reflect ECARX's ongoing efforts to enhance its market presence and technological capabilities.

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