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ECD Automotive Design (ECDA)
OTHER OTC:ECDA
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ECD Automotive Design (ECDA) AI Stock Analysis

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ECDA

ECD Automotive Design

(OTC:ECDA)

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Underperform 37 (OpenAI - 5.2)
Rating:37Underperform
Price Target:
$0.02
▼(-93.82% Downside)
Overall score is driven down primarily by severe financial weakness (negative equity, persistent losses and cash burn) and very bearish technicals (price far below all major moving averages with depressed momentum). The recent Nasdaq delisting action adds significant risk to liquidity and capital access, while valuation signals and shareholder returns are not supportive based on the provided P/E and missing dividend yield.
Positive Factors
Positioning in bespoke luxury automotive segment
ECD’s focus on heritage-inspired sports coupes, classic SUVs and bespoke 4x4 platforms targets a durable, high-margin collector and luxury aftermarket niche. This specialization builds long-term client relationships, pricing power and repeat commissions, supporting steady project-based revenues and brand differentiation over time.
Expanded product roadmap & production strategy
A two-line production approach and upgraded engineering systems increase factory utilization and allow scaling of boutique programs. Better throughput and standardization can improve fixed-cost absorption, stabilize unit economics, and turn bespoke builds into a more predictable, recurring revenue base over a multi-quarter horizon.
Leadership continuity and cost discipline
Extending the CEO’s contract preserves strategic continuity while a temporary pay reduction signals active cost management. Combined with targeted capacity deals to increase utilization, this reduces execution risk and aligns management incentives with near-term cash preservation and operational improvements over the coming quarters.
Negative Factors
Negative shareholders' equity & weak cash flow
Persistent negative equity and recurring negative operating and free cash flow materially constrain financial flexibility. Over months, this limits the company’s ability to fund operations internally, raises reliance on external financing, and increases insolvency risk if cash burn persists or capital markets tighten.
Nasdaq delisting & reduced market access
Loss of a Nasdaq listing is a structural setback for liquidity and institutional accessibility. Moving to OTC reduces visibility, narrows potential investor base, and raises the cost and difficulty of raising equity capital—constraining the firm’s ability to shore up capital over the medium term.
Weak governance & shareholder engagement
Failure to secure quorum for a special meeting signals low shareholder engagement and complicates approvals for recapitalizations or strategic transactions. Combined with recent executive departures and compliance fixes, governance weakness raises execution risk and may hinder timely restructuring or capital-raising efforts.

ECD Automotive Design (ECDA) vs. SPDR S&P 500 ETF (SPY)

ECD Automotive Design Business Overview & Revenue Model

Company DescriptionECD Automotive Design, Inc. engages in the production and sale of customized Land Rover vehicles in the United States. The company also provides repair or upgrade services and extended warranties to customers. It restores various vehicles, including Land Rovers Defenders, Land Rover Series IIA and III, the Range Rover Classic, and Jaguar E-Type. The company was founded in 2013 and is based in Kissimmee, Florida.
How the Company Makes MoneyECD Automotive Design generates revenue through a combination of service contracts, project-based work, and consulting fees. The company partners with automotive manufacturers, suppliers, and technology firms to provide tailored design solutions, which often includes long-term contracts for ongoing design and engineering support. Key revenue streams include fees for design services, engineering consultations, and prototype development. Additionally, ECDA may also earn income from licensing proprietary technologies or designs to clients in the automotive industry, enhancing their revenue potential. Strategic partnerships with major automotive brands and participation in industry collaborations further contribute to its earnings, enabling ECDA to leverage shared expertise and resources.

ECD Automotive Design Earnings Call Summary

Earnings Call Date:Aug 21, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 31, 2026
Earnings Call Sentiment Neutral
ECD Auto Design reported a record revenue and expanded their product line successfully with the Mustang program. However, increased losses, declining gross margins, and liquidity challenges, alongside a NASDAQ delisting notice, present significant concerns. The sentiment is balanced with strategic financial developments and successful retail strategies.
Q2-2025 Updates
Positive Updates
Record Revenue Achieved
ECD Auto Design reported a record revenue of USD 7 million for the second quarter of 2025, marking a USD 0.5 million increase over Q2 of 2024.
Successful Launch of Mustang Program
ECD delivered its first custom Mustang, the Project Ghost, which has won awards and expanded their product line into American muscle cars, demonstrating scalability and diversification of revenue streams.
Retail Strategy Success
The company's retail locations have contributed to backlog growth and generated ready name sales, reinforcing retail as a scalable path for filling factories and driving cash generation.
Strategic Financial Developments
ECD announced a $500 million equity facility for strategic accumulation of Bitcoin and growth initiatives, enhancing financial flexibility and engaging a crypto-native customer demographic.
Negative Updates
Decline in Gross Profit and Margin
Gross profit for the quarter was USD 1.4 million, down USD 0.7 million from Q2 2024. Gross margin decreased from 32% to 20% due to higher shipping and customs fees.
Increased Operating Expenses and Loss
Total operating expenses increased by USD 1.4 million year-over-year, primarily due to higher G&A expenses. Net loss was USD 4.3 million compared to USD 2.0 million in Q2 2024.
Delisting Notice from NASDAQ
ECD received a delisting notice from NASDAQ due to noncompliance with continued listing requirements, indicating challenges in maintaining regulatory compliance.
Cash and Liquidity Concerns
Cash and cash equivalents totaled USD 0.6 million as of June 30, 2025, compared to USD 1.5 million as of December 31, 2024, highlighting potential liquidity issues.
Company Guidance
During the second quarter of 2025, ECD Auto Design reported record revenue of $7 million, an increase of $0.5 million from the previous year, driven by higher revenue build and strong demand for their bespoke luxury vehicles. The company faced challenges with a decline in gross margin to 20% from 32% in the prior year, largely due to increased shipping and customs fees. Operating expenses rose to $4 million, primarily due to higher general and administrative expenses. The net loss for the quarter was $4.3 million, an increase from $2 million in Q2 2024. ECD secured a $500 million equity facility aimed at accumulating Bitcoin as a primary reserve asset and funding growth initiatives. The company is also focused on maintaining NASDAQ compliance, streamlining costs, and enhancing operational efficiency, with cash and cash equivalents totaling $0.6 million as of June 30, 2025.

ECD Automotive Design Financial Statement Overview

Summary
Very weak fundamentals: sharply compressed gross margin (~7% TTM vs ~23% in 2024), deeply negative net margin (~-33%), negative shareholders’ equity, and recurring negative operating cash flow/free cash flow. Debt has declined and losses narrowed vs 2024, but solvency and liquidity risk remain elevated.
Income Statement
18
Very Negative
TTM (Trailing-Twelve-Months) results show weak profitability: gross margin fell sharply to ~7% (vs ~23% in 2024), and net margin remains deeply negative at ~-33%. Revenue has also contracted in TTM after prior growth, and earnings quality is pressured by large operating losses despite slightly positive EBITDA. The main positive is that losses have narrowed versus 2024, but the overall trajectory is still volatile and unprofitable.
Balance Sheet
9
Very Negative
The balance sheet is stressed by negative shareholders’ equity across all periods, which is a major credit and financial flexibility risk. While total debt has come down from 2024 to TTM, leverage remains structurally elevated given the negative equity position, and the company has limited balance-sheet cushion to absorb ongoing losses.
Cash Flow
12
Very Negative
Cash generation is weak: operating cash flow and free cash flow are materially negative in TTM (and were also negative in 2024 and 2023), indicating the business is consuming cash rather than funding itself. A prior positive cash-flow year (2022) was not sustained, and TTM free cash flow has deteriorated further, increasing reliance on external financing.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue24.50M25.17M19.49M9.62M11.52M
Gross Profit1.76M5.89M4.52M964.95K2.56M
EBITDA103.07K-4.18M-885.00K-2.21M-533.00K
Net Income-8.10M-10.77M-1.18M-2.44M882.91K
Balance Sheet
Total Assets12.45M18.20M25.29M12.44M7.30M
Cash, Cash Equivalents and Short-Term Investments157.68K1.48M8.13M3.51M2.81M
Total Debt13.74M19.03M14.73M4.99M500.00K
Total Liabilities25.89M37.17M35.31M15.45M10.19M
Stockholders Equity-13.44M-18.98M-10.02M-3.01M-2.89M
Cash Flow
Free Cash Flow-8.51M-9.76M-5.56M954.40K-82.59K
Operating Cash Flow-8.51M-9.76M-5.01M1.49M-20.75K
Investing Cash Flow-17.03M-17.05K-554.82K-509.73K-61.84K
Financing Cash Flow5.08M3.13M7.11M-278.16K661.63K

ECD Automotive Design Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.34
Price Trends
50DMA
1.11
Negative
100DMA
7.87
Negative
200DMA
30.10
Negative
Market Momentum
MACD
-0.44
Negative
RSI
20.78
Positive
STOCH
26.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECDA, the sentiment is Negative. The current price of 0.34 is above the 20-day moving average (MA) of 0.20, below the 50-day MA of 1.11, and below the 200-day MA of 30.10, indicating a bearish trend. The MACD of -0.44 indicates Negative momentum. The RSI at 20.78 is Positive, neither overbought nor oversold. The STOCH value of 26.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ECDA.

ECD Automotive Design Risk Analysis

ECD Automotive Design disclosed 61 risk factors in its most recent earnings report. ECD Automotive Design reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks

ECD Automotive Design Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
51
Neutral
$7.37M-1.79-37.95%
47
Neutral
$9.22M-0.16-267.76%113.69%-84.50%
42
Neutral
$8.33M-0.21-41.72%
40
Neutral
$13.07M-0.13-30.79%-56.89%12.17%
37
Underperform
$31.58K-43.17%-36.68%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ECDA
ECD Automotive Design
0.02
-159.98
-99.99%
CENN
Cenntro Electric Group
0.15
-0.88
-85.63%
EVTV
Envirotech Vehicles
1.91
-1.94
-50.40%
LOBO
Lobo EV Technologies Ltd.
0.62
-0.88
-58.73%
FLYE
Fly-E Group, Inc.
5.10
-39.93
-88.67%

ECD Automotive Design Corporate Events

Delistings and Listing ChangesPrivate Placements and FinancingRegulatory Filings and ComplianceStock Split
ECD Automotive Design to Be Delisted from Nasdaq
Negative
Jan 15, 2026

ECD Automotive Design, Inc. has faced a series of Nasdaq compliance challenges, starting with notices in February 2025 that its share price and market value of listed securities fell below required thresholds. After a September 2025 Nasdaq Hearings Panel decision, the company implemented a 1-for-40 reverse stock split on September 18, 2025 to lift its share price above the $1 minimum and executed a $500 million equity line of credit, while a lender converted $13.7 million of debt into preferred equity and purchased an additional $1.1 million in preferred stock to address market value deficiencies. Although Nasdaq staff confirmed in October 2025 that the company had temporarily resolved the minimum bid deficiency, a subsequent December 29, 2025 notice found the stock again below the $1 minimum without eligibility for a new grace period, and on January 15, 2026 the Panel determined to delist ECD’s common stock and warrants from Nasdaq, with trading suspended on January 16, 2026 and the securities expected to move to the OTC Market the same day, signaling a significant setback for the company’s access to mainstream equity markets and its visibility with institutional investors.

The most recent analyst rating on (ECDA) stock is a Hold with a $0.33 price target. To see the full list of analyst forecasts on ECD Automotive Design stock, see the ECDA Stock Forecast page.

Business Operations and StrategyShareholder Meetings
ECD Automotive Design Special Shareholder Meeting Canceled
Negative
Jan 15, 2026

On January 12, 2026, ECD Automotive Design, Inc. convened a special meeting of stockholders based on a proxy record date of December 12, 2025, but the gathering was cancelled after failing to achieve the required quorum of one-third of the company’s 6,876,873 outstanding common shares. The inability to secure sufficient shareholder participation stalled any decisions that were to be taken at the meeting, potentially delaying corporate actions that might have influenced the company’s capital structure, strategic transactions or governance plans, and highlighting engagement and turnout challenges that could affect future shareholder approvals.

The most recent analyst rating on (ECDA) stock is a Hold with a $0.33 price target. To see the full list of analyst forecasts on ECD Automotive Design stock, see the ECDA Stock Forecast page.

Delistings and Listing ChangesPrivate Placements and FinancingRegulatory Filings and ComplianceStock Split
ECD Automotive faces renewed Nasdaq delisting risk again
Negative
Jan 2, 2026

In 2025, ECD Automotive Design, Inc. faced multiple Nasdaq compliance challenges related to both the $1.00 minimum bid price requirement and the $30 million market value of listed securities standard. After initial deficiency notices in February and August 2025, the company appealed impending delisting actions, and on September 16, 2025, a Nasdaq Hearings Panel granted extensions to October 1, 2025 for regaining compliance with the minimum bid rule and to January 7, 2026 for the market value requirement. To address these issues, ECD implemented a 1‑for‑40 reverse stock split on September 18, 2025, which successfully lifted its share price above $1 and led Nasdaq staff to confirm in October 2025 that the minimum bid price deficiency had been resolved, while it also executed a $500 million equity line of credit and undertook debt-to-preferred-equity conversions and additional preferred stock sales to bolster market value and capital structure. However, on December 29, 2025, Nasdaq staff notified the company that its stock had again traded below $1 for 30 consecutive business days through December 24, 2025, creating a new bid price deficiency that, combined with the ongoing market value shortfall, now serves as an additional basis for potential delisting, prompting the company to submit its views to the panel by January 5, 2026 and to continue efforts to restore and maintain compliance and preserve its Nasdaq listing.

The most recent analyst rating on (ECDA) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on ECD Automotive Design stock, see the ECDA Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
ECD Automotive Design Unveils Expanded 2026 Product Roadmap
Positive
Dec 29, 2025

On December 26, 2025, ECD Automotive Design announced a major expansion of its 2026 product roadmap, unveiling new heritage-inspired sports coupes, classic SUVs and modern 4×4 platforms, alongside a structured two-line production strategy for vintage SUVs and a broad safety and convenience modernization initiative. The broadened lineup, which includes boutique programs influenced by BMW CSL-era models, classic Jaguars, vintage Porsches and heritage Mustangs, a new American classic SUV platform, and expanded modern offerings via Chelsea Truck Company USA on bases such as the new Land Rover Defender, Ineos Grenadier, Range Rover and Mercedes-Benz G-Wagen, is underpinned by upgraded engineering systems and is aimed at reinforcing ECD’s positioning in the bespoke luxury automotive segment by improving scalability, drivability, safety and personalization for collectors and high-end clients.

The most recent analyst rating on (ECDA) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on ECD Automotive Design stock, see the ECDA Stock Forecast page.

Delistings and Listing ChangesShareholder MeetingsStock Split
ECD Automotive Design Announces 1-for-5 Reverse Split
Neutral
Dec 22, 2025

On December 22, 2025, ECD Automotive Design announced it will implement a 1-for-5 reverse stock split of its common stock, effective at the market open on December 26, 2025, with shares continuing to trade on the Nasdaq Capital Market under the ticker ECDA but with a new CUSIP. The move, previously approved by shareholders at the July 22, 2025 annual meeting and finalized by the board, is intended to lift the company’s share price to meet Nasdaq’s $1.00 minimum bid requirement, reducing the number of outstanding shares from roughly 6.93 million to about 1.39 million without changing the number of authorized shares or par value, and adjusting outstanding equity awards accordingly; the transaction is structured to be operationally seamless for most investors, with electronic holders needing no action and fractional positions rounded up, underscoring management’s focus on maintaining the company’s public listing and market credibility.

The most recent analyst rating on (ECDA) stock is a Hold with a $0.28 price target. To see the full list of analyst forecasts on ECD Automotive Design stock, see the ECDA Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
ECD Automotive Design extends CEO contract, refines costs
Positive
Dec 19, 2025

On December 12, 2025, ECD Automotive Design extended Chief Executive Officer Scott Wallace’s employment agreement by two years through December 12, 2027, while imposing a temporary 10% reduction in his base salary effective the same date, to be reviewed quarterly, signaling a blend of leadership continuity and cost discipline. Also on December 12, 2025, the company announced an agreement to assume select builds from a regional 4×4 restoration and modification shop serving southern New England, committing at least 10% of its annual production capacity to the program; management said the deal is intended to increase factory utilization, add a minimum of 20 units per year to ECD’s backlog, improve fixed-cost absorption and unit economics, and better leverage its existing skilled workforce and advanced facility for incremental volume.

The most recent analyst rating on (ECDA) stock is a Hold with a $0.28 price target. To see the full list of analyst forecasts on ECD Automotive Design stock, see the ECDA Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
ECD Automotive Design Restructures Leadership for Innovation
Neutral
Dec 10, 2025

On December 4, 2025, ECD Automotive Design transitioned Elliot Humble from Chief Technology Officer to Product Development Director as part of a cost-restructuring initiative. This change, which is not due to any disagreements, aims to enhance product innovation and is governed by a new employment agreement dated November 13, 2025.

The most recent analyst rating on (ECDA) stock is a Sell with a $0.34 price target. To see the full list of analyst forecasts on ECD Automotive Design stock, see the ECDA Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
ECD Automotive Design Reports Q3 2025 Financial Results
Neutral
Nov 25, 2025

On November 20, 2025, ECD Automotive Design announced its financial results for the third quarter of 2025, highlighting a revenue of $5.8 million, a decrease from the previous year, and a net income of $2.2 million, a significant improvement from a net loss in the prior year. The company attributes its financial performance to the completion of legacy builds and tariff-related costs, alongside a strategic focus on cost containment and operational efficiency, which is expected to save over $1 million annually. ECD also expanded its product lineup with a new collaboration with Chelsea Truck Company and entered the Porsche restoration market, aiming to enhance its market position and broaden its addressable market.

The most recent analyst rating on (ECDA) stock is a Sell with a $0.50 price target. To see the full list of analyst forecasts on ECD Automotive Design stock, see the ECDA Stock Forecast page.

Executive/Board ChangesRegulatory Filings and Compliance
ECD Automotive Design Announces Executive Departures
Neutral
Nov 17, 2025

On November 11, 2025, ECD Automotive Design, Inc. addressed a compliance issue with Nasdaq regarding a warrant issued on September 24, 2025, which initially violated Nasdaq Rule 5635(d). The company amended the warrant on October 1, 2025, to regain compliance. Additionally, ECD Automotive Design announced the termination of employment for Emily Humble, Chief Product Officer, and Thomas Humble, Chief Experience Officer, effective November 11, 2025, due to personal reasons. The company has agreed to provide severance packages, including cash payments, equity issuance, and COBRA premium coverage, while Emily Humble will remain on the Board of Directors.

The most recent analyst rating on (ECDA) stock is a Sell with a $0.50 price target. To see the full list of analyst forecasts on ECD Automotive Design stock, see the ECDA Stock Forecast page.

Private Placements and FinancingRegulatory Filings and Compliance
ECD Automotive Design’s $300M Stock Sale Approval
Neutral
Nov 4, 2025

On November 3, 2025, ECD Automotive Design, Inc.’s registration statement on Form S-1 became effective, allowing the company to commence sales of up to $300 million worth of common stock under an Equity Purchase Facility Agreement. The company plans to use the proceeds to acquire Bitcoin as a treasury reserve asset and to raise capital for growth and general corporate purposes.

The most recent analyst rating on (ECDA) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on ECD Automotive Design stock, see the ECDA Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 30, 2026