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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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Underperform 38 (OpenAI - 5.2)
Rating:38Underperform
Price Target:
$0.38
▲(79.05% Upside)
The score is driven primarily by very weak financial performance (persistent losses, negative equity, and ongoing cash burn) and a strongly bearish technical setup (price far below key moving averages with negative momentum). Valuation provides limited support given losses and no dividend, while corporate events are a net risk due to renewed Nasdaq delisting concerns despite some positive operational announcements.
Positive Factors
Expanded 2026 Product Roadmap
Broadening the product lineup into heritage sports coupes, classic SUVs and modern 4x4 platforms materially increases ECDA’s addressable market and product diversification. Upgraded engineering systems and a structured production approach support scalability, repeatable programs and longer-term revenue visibility in the bespoke luxury segment.
Leadership Continuity and Cost Discipline
Extending the CEO’s agreement while implementing pay reductions signals management continuity with active cost control. Coupled with targeted operational savings, this reduces execution risk, supports disciplined capital allocation and helps preserve managerial focus during a multi-quarter turnaround effort.
Potential Balance-Sheet Recapitalization
An imminent debt-to-preferred equity conversion or cash/preferred infusion could materially improve shareholder equity and reduce leverage. Such structural recapitalization would bolster solvency, increase financing flexibility and reduce short-term refinancing pressure, improving the firm’s ability to execute its growth roadmap.
Negative Factors
Negative Shareholders’ Equity
Persistently negative equity is a durable solvency constraint that limits borrowing capacity, raises cost of capital, and increases vulnerability to creditor actions. Without sustained profitability or meaningful recapitalization, negative equity erodes financial flexibility and hampers long-term investment and growth plans.
Weak Cash Generation
Material and recurring negative operating and free cash flow indicate the business consumes cash rather than funds itself, forcing dependence on external financing. This structural cash gap constrains reinvestment, increases refinancing risk and makes sustained operational improvements contingent on successful capital raises or margin recovery.
Recurring Nasdaq Listing Risk
Repeated compliance breaches and reliance on reverse splits, equity lines and preferred sales to maintain listing create persistent governance and access-to-capital risks. Ongoing listing uncertainty undermines investor confidence and could restrict liquidity and future capital-raising capacity if deficiencies continue.

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 leading automotive design and engineering firm specializing in the development of innovative vehicle concepts and solutions. The company operates primarily in the automotive sector, providing services that include vehicle design, engineering, prototyping, and consulting for manufacturers and OEMs. ECDA's core offerings encompass both aesthetic and functional design, focusing on enhancing vehicle performance, safety, and user experience while adhering to industry standards and regulations.
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
Financial statements indicate severe stress: negative profitability (net income, EBIT/EBITDA, and gross profit), negative stockholders’ equity (liabilities exceeding assets), and negative operating/free cash flow. Revenue growth is a positive, but it is outweighed by weak margins, leverage concerns, and cash burn.
Income Statement
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
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
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 Price0.21
Price Trends
50DMA
3.29
Negative
100DMA
11.77
Negative
200DMA
39.21
Negative
Market Momentum
MACD
-0.89
Negative
RSI
24.52
Positive
STOCH
4.43
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 0.21 is below the 20-day moving average (MA) of 0.88, below the 50-day MA of 3.29, and below the 200-day MA of 39.21, indicating a bearish trend. The MACD of -0.89 indicates Negative momentum. The RSI at 24.52 is Positive, neither overbought nor oversold. The STOCH value of 4.43 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
$7.13M-1.73-37.95%
42
Neutral
$12.49M-41.72%
41
Neutral
$2.37M-0.04-267.76%113.69%-84.50%
40
Neutral
$14.19M-0.14-30.79%-56.89%12.17%
38
Underperform
$554.83K>-0.01-43.17%-36.68%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ECDA
ECD Automotive Design
0.40
-197.60
-99.80%
CENN
Cenntro Electric Group
0.16
-1.01
-86.24%
EVTV
Envirotech Vehicles
0.49
-10.91
-95.69%
LOBO
Lobo EV Technologies Ltd.
0.60
-1.12
-65.17%
FLYE
Fly-E Group, Inc.
7.65
-51.35
-87.03%

ECD Automotive Design Corporate Events

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.

Business Operations and StrategyPrivate Placements and FinancingRegulatory 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.

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 09, 2026