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SHANGHAI - ECARX Holdings, Inc. (NASDAQ:ECX), a global mobility technology provider with a market capitalization of $594 million and impressive revenue growth of 25% year-over-year, announced today the enhancement of its ECARX AutoGPT in-vehicle AI application through the integration of the DeepSeek-R1 model. According to InvestingPro analysis, ECARX is a prominent player in the Automobile Components industry, though investors should note the company is currently working through profitability challenges. This upgrade is set to offer a more efficient, secure, and personalized user experience for automotive applications.
The integration of DeepSeek-R1 into ECARX’s AutoGPT system is designed to improve local processing capabilities, enabling vehicles to execute complex tasks independently of cloud-based resources. This shift towards localization not only bolsters data privacy and compliance with local privacy regulations but also reduces latency, and data transmission and storage costs. Additionally, it is expected to decrease security certification expenses for ECARX’s expanding domestic and international customer base.
Ziyu Shen, co-founder, Chairman, and CEO of ECARX, stated that the integration marks a significant advancement in the company’s capabilities, enhancing the user experience of their intelligent cockpits. Shen highlighted the cost savings and data privacy benefits for customers worldwide, emphasizing the importance of this development for the sustainable evolution of the global automotive industry towards software-defined vehicles.
The ECARX AutoGPT, tailored for automotive use, features core capabilities such as AutoAgent, AutoFlow, AutoScene, and AutoEco, built upon leading large language models to enrich the in-vehicle experience. The AutoAgent function allows for customizable services that adapt to driver preferences, aiming to create more engaging user experiences.
With the addition of DeepSeek-R1, ECARX AutoGPT’s core capabilities are strengthened, particularly in complex in-vehicle interactions and cross-domain scenarios, providing smarter and safer in-vehicle solutions. ECARX aims to continue innovating through a collaborative ecosystem of global partnerships to deliver next-generation automotive intelligence.
Founded in 2017 and listed on NASDAQ in 2022, ECARX has grown to employ over 1,800 people across major locations in China, the UK, the USA, Sweden, Germany, and Malaysia. The company collaborates with several well-known automakers and its technology is currently used in over 7.3 million vehicles globally. While the company’s technology reaches millions of vehicles, InvestingPro data shows current financial metrics warrant attention, with an EBITDA of -$139 million and a concerning current ratio of 0.62, indicating potential liquidity challenges. For detailed analysis of ECARX’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
This announcement is based on a press release statement and contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected. ECARX has made no commitment to revise these forward-looking statements following the date of this news release. Trading at $1.73, the stock currently appears slightly undervalued according to InvestingPro Fair Value calculations, though investors should note the company’s negative earnings yield of -27% and upcoming earnings report scheduled for February 28, 2025. InvestingPro subscribers have access to over 10 additional key insights about ECARX, along with real-time valuation metrics and peer comparison tools.
In other recent news, ECARX, a global automotive technology company, has announced a $20 million share buyback program. The board of directors has approved the plan, which will be conducted in compliance with the Securities Exchange Act of 1934 and the company’s insider trading policy. The share repurchases will be funded from ECARX’s existing cash reserves and may occur in the open market, through block trades, or in privately negotiated transactions, depending on market conditions.
In recent developments, ECARX also reported a 31% year-over-year revenue growth for the third quarter of 2024, reaching RMB1.4 billion, primarily driven by the strong demand for the company’s Antora and Makalu platforms. Despite the robust revenue growth, the company experienced a decrease in gross margin to 17% and a net loss of RMB0.97 per share due to pricing pressures and increased competition.
The company is focusing on cost optimization and manufacturing expansion, with the goal to control a substantial portion of production over the next few years. These developments are part of ECARX’s growth trajectory and its commitment to enhancing shareholder value.
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