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ECD Automotive Design (ECDA)
NASDAQ:ECDA
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ECD Automotive Design (ECDA) AI Stock Analysis

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ECDA

ECD Automotive Design

(NASDAQ:ECDA)

Rating:41Neutral
Price Target:
$0.00
▼(-100.00% Downside)
ECD Automotive Design's overall stock score is primarily impacted by its severe financial difficulties, including negative profitability and high leverage. Technical indicators and valuation metrics further reflect bearish sentiment and unappealing valuation. While strategic initiatives and record revenue provide some positive outlook, the risks associated with potential Nasdaq delisting and liquidity issues are significant.

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

ECD Automotive Design Business Overview & Revenue Model

Company DescriptionECD Automotive Design (ECDA) is a premier luxury vehicle customization and restoration company specializing in creating bespoke, handcrafted vehicles. Known for transforming classic Land Rover Defenders and Range Rovers into high-performance, tailor-made works of art, ECDA caters to a global clientele seeking unique and personalized automotive experiences. The company operates in the automotive design sector, combining traditional craftsmanship with modern engineering and technology to deliver exceptional quality and performance.
How the Company Makes MoneyECD Automotive Design makes money primarily through the sale of customized vehicles. The company generates revenue by offering bespoke design and restoration services, where clients can choose from a wide range of customizations, including engine upgrades, interior fittings, exterior finishes, and cutting-edge technology integrations. Each project is typically priced based on the level of customization and the specific requirements of the client, leading to a high-margin, premium pricing model. Additionally, ECDA may collaborate with luxury brands or enter into partnerships to enhance its offerings, although specific partnerships are not disclosed. The company's focus on delivering unique, high-end vehicles ensures a steady demand from affluent customers, contributing significantly to its earnings.

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
ECD Automotive Design faces severe financial difficulties with negative profitability, high leverage, and negative cash flows. Despite revenue growth, the lack of profitability and high debt levels pose substantial risks, indicating the need for strategic changes to improve financial health.
Income Statement
10
Very Negative
The company has experienced significant revenue growth in 2024, yet it operates with negative profitability metrics such as net profit margin and EBIT margin. The negative net income and gross profit indicate substantial financial challenges. EBIT and EBITDA are also negative, suggesting operational difficulties.
Balance Sheet
5
Very Negative
ECD Automotive Design has a concerning financial structure with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is irrelevant due to negative equity, and high leverage poses financial stability risks. The equity ratio is negative, further indicating financial distress.
Cash Flow
15
Very Negative
The cash flow situation is critical with negative operating and free cash flows, indicating the company is struggling to generate cash. Operating cash flow to net income ratio is negative, reflecting cash outflows in operations. Financing activities provide some relief but are unsustainable long-term.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue25.16M25.17M19.49M9.62M11.52M
Gross Profit5.41M5.89M4.52M964.95K2.56M
EBITDA-5.74M-4.18M-885.00K-2.21M-533.00K
Net Income-12.90M-10.77M-1.18M-2.44M882.91K
Balance Sheet
Total Assets14.36M18.20M25.29M12.44M7.30M
Cash, Cash Equivalents and Short-Term Investments605.30K1.48M8.13M3.51M2.81M
Total Debt23.46M19.03M14.73M4.99M500.00K
Total Liabilities37.49M37.17M35.31M15.45M10.19M
Stockholders Equity-23.13M-18.98M-10.02M-3.01M-2.89M
Cash Flow
Free Cash Flow-10.28M-9.76M-5.56M954.40K-82.59K
Operating Cash Flow-10.28M-9.76M-5.01M1.49M-20.75K
Investing Cash Flow-17.00M-17.05K-554.82K-509.73K-61.84K
Financing Cash Flow5.21M3.13M7.11M-278.16K661.63K

ECD Automotive Design Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.10
Price Trends
50DMA
0.20
Negative
100DMA
0.27
Negative
200DMA
0.56
Negative
Market Momentum
MACD
-0.02
Negative
RSI
28.64
Positive
STOCH
8.30
Positive
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 0.1 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.20, and below the 200-day MA of 0.56, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 28.64 is Positive, neither overbought nor oversold. The STOCH value of 8.30 is Positive, 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$18.05B11.7310.24%3.73%9.66%1.70%
46
Neutral
$7.77M-189.10%2.97%-11.17%
45
Neutral
$19.06M-201.87%11.73%74.79%
41
Neutral
$7.53M-82.82%-31.40%-161.97%
40
Neutral
$27.10M-31.82%7.86%-22.19%
38
Underperform
$8.13M-119.04%
11
Underperform
$5.58M86.35%-27.08%34.32%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ECDA
ECD Automotive Design
0.10
-1.08
-91.53%
WKHS
Workhorse Group
1.24
-6.00
-82.87%
CENN
Cenntro Electric Group
0.52
-0.65
-55.56%
EVTV
Envirotech Vehicles
2.20
-14.80
-87.06%
CJET
Chijet Motor Company
0.18
-2.69
-93.73%
PEVM
Phoenix Motor
0.82
-1.37
-62.56%

ECD Automotive Design Corporate Events

Delistings and Listing Changes
ECD Automotive Design Faces Nasdaq Delisting Notice
Negative
Aug 29, 2025

ECD Automotive Design, Inc. has been notified by the Nasdaq Listing Qualifications Department that its market value has fallen below the required minimum for continued listing. On August 26, 2025, the company received a delisting notice and plans to appeal this decision at a hearing on September 9, 2025. If unsuccessful, ECD Automotive Design’s securities will be delisted from Nasdaq and will begin trading on the OTC Markets.

Business Operations and StrategyFinancial Disclosures
ECD Automotive Design Announces Q2 2025 Financial Call
Neutral
Aug 25, 2025

On August 19, 2025, ECD Automotive Design announced plans to hold a conference call on August 21, 2025, to discuss its Second Quarter 2025 financial results. The company, known for its custom luxury vehicle restorations, aims to provide insights into its operational and financial performance for the quarter ended June 30, 2025. This announcement is significant for stakeholders as it reflects ECD’s commitment to transparency and could impact its market positioning by showcasing its financial health and strategic direction.

Private Placements and FinancingBusiness Operations and Strategy
ECD Automotive Design Sells Series C Preferred Stock
Neutral
Aug 14, 2025

ECD Automotive Design, Inc. has entered into a Second Amendment and Exchange Agreement with an accredited investor, authorizing a new series of convertible preferred stock, known as Series C Convertible Preferred Stock. This agreement allows the investor to exchange outstanding notes into shares of this new preferred stock, which can be converted into common stock. On August 7, 2025, the company issued 15,000 shares of Series C Preferred Stock as part of this exchange. Additionally, on August 13, 2025, ECD Automotive Design entered into a securities purchase agreement with the same investor, selling 1,111 shares of Series C Convertible Preferred Stock at a discounted price. This move is part of ECD’s strategic financial operations, potentially impacting its market positioning and stakeholder interests.

Delistings and Listing Changes
ECD Automotive Design Appeals Nasdaq Delisting Notice
Negative
Aug 12, 2025

ECD Automotive Design, Inc. has been notified by the Nasdaq Listing Qualifications Department that its stock price has been below $1 per share for over 30 consecutive business days, failing to comply with Nasdaq’s listing rules. On August 6, 2025, the company received a notice that its securities are subject to suspension and delisting unless an appeal is filed by August 13, 2025. ECD Automotive Design intends to appeal, which will temporarily halt any suspension or delisting actions.

Shareholder MeetingsStock SplitBusiness Operations and Strategy
ECD Automotive Design Approves Key Proposals at Meeting
Neutral
Jul 23, 2025

On July 22, 2025, ECD Automotive Design, Inc. held its annual meeting of stockholders. During this meeting, several key proposals were approved, including a reverse stock split, share issuances, an amendment to the equity incentive plan, the election of a director, and the ratification of the company’s auditor. These approvals reflect strategic decisions aimed at enhancing the company’s financial structure and governance, potentially impacting its market positioning and stakeholder interests.

Private Placements and Financing
ECD Automotive Design Restructures Debt with Series C Conversion
Neutral
Jul 7, 2025

ECD Automotive Design, Inc. has entered into several agreements with a private lender to convert existing notes and preferred stock into a new Series C Convertible Preferred Stock, which can be converted into common stock. On June 20, 2025, the lender converted 4,000 shares of Series B Preferred Stock into Series C Preferred Stock. Additionally, on July 7, 2025, the lender converted $2,462,805 from a loan agreement into 5,000 shares of Series C Preferred Stock. These financial maneuvers are aimed at restructuring the company’s debt and potentially improving liquidity.

Business Operations and Strategy
ECD Automotive Design Announces Strategic Initiatives
Positive
Jun 23, 2025

ECD Automotive Design announced several strategic initiatives on June 23, 2025, aimed at enhancing operational efficiency and financial stability. The company completed a comprehensive review of its cost structure, negotiated a waiver with lenders to resolve existing defaults, and introduced a new Bitcoin treasury strategy. These efforts are intended to optimize working capital and support disciplined growth, positioning ECD to continue delivering high-quality custom vehicles while creating long-term value for shareholders.

Private Placements and FinancingM&A TransactionsRegulatory Filings and Compliance
ECD Automotive Design Secures $21.9 Million June Note
Neutral
Jun 11, 2025

ECD Automotive Design completed a business combination with Humble Imports Inc. and ECD Auto Design UK, issuing shares and warrants to former security holders, and securing a $15.8 million loan through a senior secured convertible note on December 12, 2023. The company faced several events of default related to its financial statements and filing obligations in 2024, leading to subsequent agreements with the lender to waive defaults and secure additional financing, including a $1.7 million loan in January 2025 and a $21.9 million note in June 2025.

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: Aug 30, 2025