ECARX Holdings Inc. (NASDAQ: ECX) completed a private placement of 27,297,002 newly issued Class A ordinary shares on January 12 2026, raising $45.6 million at $1.67 per share. The transaction was executed under a subscription agreement with Geely Investment Holding Ltd., a subsidiary of Geely Holding Group, and the shares will be subject to a six‑month lock‑up period and customary closing conditions such as regulatory approvals and completion of due diligence.
The proceeds will be used to accelerate the development of ECARX’s vehicle hardware and software solutions, expand its research and development hub in Germany, and build infrastructure in key growth markets in South America and Southeast Asia. The company also intends to use the capital to diversify its revenue mix beyond the current concentration of roughly 80 % with the Geely ecosystem, thereby reducing reliance on a single partner and strengthening liquidity for future growth initiatives.
The issuance of 27.3 million shares increases the total shares outstanding, diluting existing shareholders proportionally. However, the $45.6 million cash buffer is expected to support product development, supply‑chain expansion, and potential acquisitions, positioning ECARX to capture new OEM opportunities and mitigate the risk of over‑dependence on Geely.
ECARX’s Q3 2025 results showed revenue growth and a net profit, but the company’s revenue concentration remained high, with Geely and its subsidiaries accounting for nearly 80 % of revenue in the previous year. The equity raise signals confidence from a key shareholder and provides the financial flexibility needed to pursue a broader customer base and global expansion.
"ECARX has established itself as a key technology partner in the global automotive industry, and this investment underscores Geely’s continued confidence in the company’s long‑term vision and technological capabilities," said Daniel Donghui Li, Executive Vice Chairman of Geely Holding Group.
"The investment represents a strong vote of confidence in ECARX’s fundamentals, global strategy, and ability to respond to market demand, especially at a time when the company believes its share price does not fully reflect its long‑term growth potential," added Ziyu Shen, CEO and Chairman of ECARX.
The capital infusion positions ECARX to accelerate its product roadmap, expand its global footprint, and strengthen its financial position, thereby enhancing its ability to compete in the rapidly evolving automotive technology market.
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