10 Pump and Dump Stocks Favored by Hedge Funds

7. ECARX Holdings Inc. (NASDAQ:ECX)

Number of Hedge Fund Holders: 19

ECARX Holdings Inc. (NASDAQ:ECX) is a global automotive technology company specializing in smart vehicle computing platforms. It develops hardware and software solutions, including digital cockpits, infotainment systems, and advanced driver-assistance system (ADAS) platforms, enabling connectivity and automation in modern vehicles. ECARX serves major automakers, particularly in China and international markets, providing integrated solutions that enhance user experience and vehicle intelligence. The company generates revenue through product sales, software licensing, and partnerships with automotive manufacturers, positioning itself as a key player in the digital transformation of the automotive industry.

ECARX Holdings Inc. (NASDAQ:ECX) demonstrated strong performance in 2024, with revenue increasing by 18% year-over-year to RMB 5.6 billion and gross margins of 20.8%. The company achieved a significant milestone by reaching EBITDA breakeven in Q4 2024, with an adjusted EBITDA gain of RMB 74 million. This improvement was primarily attributed to decreased operating expenses and gains from partial sales of an equity investment. ECX’s total shipments reached a record high of 2 million units in 2024, up 33% YoY, with over 8.1 million vehicles on the road incorporating their technology by year-end.

ECARX Holdings Inc. (NASDAQ:ECX) expanded its global customer base to 18 automakers across 28 brands, securing a notable project win with Volkswagen Group. ECX continued to innovate, releasing its AutoGPT in-vehicle AI large language model application and integrating multiple LLMs. The company’s focus on diversifying its revenue streams is evident, with plans to increase non-Geely business from 20% in 2024 to approximately 50% by 2027-2028. Looking ahead, management is prioritizing breakeven plans in 2025, while continuing to invest in R&D and expand the company’s global presence. The company is also exploring options for capital raising, including equity or debt financing, to support its strategic objectives. With high stock price volatility in the last 52 weeks and 19 hedge fund holders, ECX is one of the pump and dump stocks favored by hedge funds.