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ECD Automotive Design (ECDA)
NASDAQ:ECDA
US Market

ECD Automotive Design (ECDA) AI Stock Analysis

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ECDA

ECD Automotive Design

(NASDAQ:ECDA)

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Neutral 41 (OpenAI - 4o)
Rating:41Neutral
Price Target:
$0.28
▲(22.61% Upside)
ECD Automotive Design's overall stock score is primarily impacted by severe financial difficulties, including negative profitability and high leverage. Technical analysis indicates a strong downward trend, and valuation metrics are poor. While there are positive developments in strategic initiatives and Nasdaq listing retention, these are overshadowed by significant financial and operational challenges.
Positive Factors
Product Line Expansion
The successful launch of the Mustang program demonstrates scalability and diversification, enhancing market reach and revenue potential.
Strategic Financial Developments
The equity facility enhances financial flexibility and targets a crypto-native demographic, supporting long-term growth initiatives.
Cost Containment and Efficiency
Cost containment measures improve operational efficiency, reducing expenses and potentially enhancing profitability over the long term.
Negative Factors
Negative Profitability
Persistent negative profitability indicates operational challenges, which can hinder long-term financial health and growth prospects.
High Leverage
High leverage increases financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth opportunities.
Liquidity Concerns
Low liquidity levels raise concerns about the company's ability to meet short-term obligations and sustain operations without additional financing.

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
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 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 Price0.23
Price Trends
50DMA
1.40
Negative
100DMA
3.20
Negative
200DMA
9.86
Negative
Market Momentum
MACD
-0.32
Negative
RSI
22.06
Positive
STOCH
12.87
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 0.23 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 1.40, and below the 200-day MA of 9.86, indicating a bearish trend. The MACD of -0.32 indicates Negative momentum. The RSI at 22.06 is Positive, neither overbought nor oversold. The STOCH value of 12.87 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 (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%
54
Neutral
$9.00M-2.01-37.95%
41
Neutral
$714.16K-0.02-43.17%-36.68%
40
Neutral
$13.41M-0.13-30.79%-56.89%12.17%
40
Underperform
$4.58M-0.07-267.76%113.69%-84.50%
40
Underperform
$11.51M-0.25-48.91%
11
Underperform
$1.09M-60.03%31.08%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ECDA
ECD Automotive Design
0.23
-38.59
-99.41%
CENN
Cenntro Electric Group
0.15
-0.90
-85.71%
EVTV
Envirotech Vehicles
0.80
-12.10
-93.80%
CJET
Chijet Motor Company
0.66
-198.65
-99.67%
LOBO
Lobo EV Technologies Ltd.
0.70
-1.17
-62.57%
FLYE
Fly-E Group, Inc.
6.58
-33.02
-83.38%

ECD Automotive Design Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
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.

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.

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.

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.

Private Placements and FinancingBusiness Operations and StrategyRegulatory Filings and Compliance
ECD Automotive Design Completes Securities Purchase Agreement
Neutral
Oct 28, 2025

ECD Automotive Design recently completed a securities purchase agreement with an accredited investor, resulting in the sale of 1,111 shares of Series C Convertible Preferred Stock for $999,900. The company is implementing cost-reduction measures and pursuing strategic transactions to achieve annual savings of $1.6 million and comply with Nasdaq listing requirements.

Private Placements and FinancingLegal Proceedings
ECD Automotive Settles Legal Fees with Stock Warrants
Neutral
Sep 29, 2025

On September 24, 2025, ECD Automotive Design, Inc. entered into an agreement with its securities counsel, Loeb & Loeb LLP, to settle legal fees amounting to $2,090,000. As part of the agreement, ECD Automotive issued a common stock purchase warrant to Loeb for 550,000 shares at an exercise price of $0.01 per share, based on the stock’s closing price of $3.80 on September 23, 2025. The agreement allows Loeb to reduce the fees by the net proceeds from selling the warrant shares, with the warrants exercisable over three years. This move potentially impacts ECD Automotive’s financial obligations and stock ownership structure, as it limits Loeb’s beneficial ownership to 4.99%.

Delistings and Listing ChangesPrivate Placements and FinancingStock Split
ECD Automotive Design Retains Nasdaq Listing Approval
Positive
Sep 26, 2025

On September 22, 2025, ECD Automotive Design announced that the Nasdaq Hearings Panel granted their request to continue listing on Nasdaq, contingent upon meeting specific conditions by early 2026. The company is actively working to comply with Nasdaq’s requirements, including a minimum bid price and equity standards, through measures like a reverse stock split and securing a substantial equity line of credit, reflecting their commitment to maintaining financial stability and delivering long-term shareholder value.

Delistings and Listing ChangesStock Split
ECD Automotive Announces Reverse Stock Split Plan
Neutral
Sep 12, 2025

On September 12, 2025, ECD Automotive Design announced a 1-for-40 reverse stock split of its common stock, set to take effect on September 18, 2025. This move, approved by stockholders in July, aims to increase the per-share trading price to meet Nasdaq’s minimum bid requirement, reducing outstanding shares from approximately 59 million to 1.5 million, while maintaining the same number of authorized shares and par value.

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: Dec 11, 2025