ECARX Announces US$23 Million Strategic Investment in Lotus Technology to Deepen Global Partnership

Rhea-AI Summary

ECARX (Nasdaq: ECX) entered a share subscription agreement with Lotus Technology (Nasdaq: LOT) on December 23, 2025, to invest US$23 million via a private placement.

ECARX will subscribe for 16,788,321 ordinary shares at US$1.37 per share; the investment is expected to close within 30 days and the issued shares will have a six-month lock-up with customary exceptions.

The strategic investment aims to deepen the partnership by deploying ECARX's Pikes computing platform and Cloudpeak software stack with Google Automotive Services in Lotus Tech vehicles globally to accelerate ECARX's international expansion.

Positive

• US$23 million strategic investment into Lotus Technology
• 16,788,321 shares to be issued at US$1.37 per share
• Agreement targets global deployment of Pikes computing platform with Cloudpeak + GMS
• Expected close within 30 days, tightening strategic collaboration

Negative

• Private placement subject to customary closing conditions, so closing is not guaranteed
• Issued ordinary shares subject to a six-month lock-up, limiting immediate liquidity
• Securities not registered under the U.S. Securities Act and cannot be offered or sold in the U.S. absent an exemption

Key Figures

Lotus Tech investment US$23 million Strategic private placement by ECARX into Lotus Technology

Subscription shares 16,788,321 shares New Lotus Tech ordinary shares subscribed by ECARX

Subscription price US$1.37 per share Price per Lotus Tech ordinary share in the private placement

Lock-up period 6 months Lock-up on Lotus Tech shares issued to ECARX, with customary exceptions

Closing timeline 30 days Expected closing window after Subscription Agreement execution

Q3 2025 revenue $219.9M Total revenue in Q3 2025, +11% year over year

Q3 2025 gross margin 22% Q3 2025 gross margin vs 17% a year earlier

Convertible notes offering US$50,000,000 Registered aggregate principal amount of convertible notes per 424B5

Market Reality Check

$1.64 Last Close

Volume Volume 6,942,757 is about 1.77x the 20-day average of 3,931,068, signaling elevated trading activity ahead of this partnership news. high

Technical Shares at $1.55 were trading below the 200-day MA of $1.80 and were 52.31% under the 52-week high of $3.25.

Peers on Argus

ECX fell 7.74% while close auto-parts peers showed small mixed moves (e.g., CPS up 0.73%, PLOW down 0.63%), pointing to a stock-specific move rather than a sector-wide shift.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 13	VW partnership win	Positive	+5.3%	Award to supply digital cockpit solutions for VW models in Latin America.
Nov 03	Q3 2025 earnings	Positive	-0.8%	Revenue growth, margin expansion, and return to adjusted EBITDA and net profit.
Oct 31	Convertible financing	Positive	-0.8%	Up to $150M in convertible notes to support liquidity and global expansion.
Oct 31	Board change	Neutral	-0.8%	Director resignation and appointment of seasoned automotive and finance executive.
Oct 24	UK platform launch	Positive	-1.7%	Antora and Cloudpeak powering Geely Galaxy EX5 launch and EU certifications.

Pattern Detected

Partnership and expansion news often read as positive but have produced mixed to negative next-day moves, suggesting enthusiasm has not consistently translated into sustained price strength.

Recent Company History

Over the past months, ECARX has focused on partnerships, growth financing, and geographic expansion. A Nov 13, 2025 Volkswagen cockpit partnership saw a 5.29% gain, while strong Q3 2025 results on Nov 3 and a $150M convertible-note financing on Oct 31 both coincided with modest -0.8% moves. Earlier, UK expansion with Geely’s EX5 and multiple strategic tech collaborations produced mixed reactions. Today’s Lotus Technology investment fits the pattern of using partnerships to deepen global OEM penetration and showcase ECARX’s Pikes and Cloudpeak platforms.

Market Pulse Summary

This announcement details a US$23 million strategic private placement into Lotus Technology, giving ECARX 16,788,321 new shares at US$1.37 each with a six-month lock-up. It extends a consistent partnership strategy that previously included Volkswagen, FAW Hongqi, HERE, and others, all centered on ECARX’s Pikes and Cloudpeak platforms. Investors may track how this collaboration converts into vehicle deployments and revenue, while also considering recent convertible-note financing and broader capital-allocation choices.

Key Terms

private placement financial

"invest US$23 million through a private placement."

A private placement is a way for companies to raise money by selling securities directly to a small group of investors instead of through a public offering. This process is often quicker and less regulated, making it similar to offering a special, exclusive investment opportunity to select individuals or institutions. For investors, it can provide access to unique investment options that are not available on public markets.

lock-up period financial

"will be subject to a six-month lock-up period, with certain customary exceptions."

A lock-up period is a fixed time after a stock offering during which company insiders and early investors are legally barred from selling their shares. It matters because when that restriction expires a large block of previously locked-up shares can enter the market at once, potentially lowering the stock price or spiking trading volume—like opening a floodgate—so investors monitor these dates to anticipate price moves and manage risk.

Google Automotive Services technical

"software stack with full Google Automotive Services integration in Lotus Tech's vehicles"

Google Automotive Services is a licensed bundle of Google’s in‑car software and apps — such as navigation, voice assistant, app store and underlying platform services — that automakers can include in their vehicles. For investors, it matters because it represents a recurring software and services revenue stream, shapes the user experience that can affect car sales and brand loyalty, and creates dependency risks and competitive dynamics between tech platforms and vehicle makers.

Nasdaq financial

"ECARX Holdings Inc. (Nasdaq: ECX) ("ECARX" ), a global mobility tech provider"

The Nasdaq is a stock exchange where many companies' shares are bought and sold, functioning much like a marketplace for investments. It matters to investors because it provides a platform to buy and sell ownership stakes in companies, helping them track the value of those companies and make informed decisions. As one of the largest and most technology-focused markets, it also reflects trends and developments in the business world.

AI-generated analysis. Not financial advice.

LONDON, Dec. 29, 2025 /PRNewswire/ -- ECARX Holdings Inc. (Nasdaq: ECX) ("ECARX" or the "Company"), a global mobility tech provider, announced that it entered into a share subscription agreement (the "Subscription Agreement") on December 23, 2025, with Lotus Technology Inc. ("Lotus Tech") (Nasdaq: LOT), to strategically invest US$23 million through a private placement.

Pursuant to the Subscription Agreement, ECARX will subscribe for a total of 16,788,321 newly issued ordinary shares of Lotus Tech at a price of US$1.37 per ordinary share, subject to customary closing conditions. The investment is expected to close within 30 days following the execution of the Subscription Agreement. The ordinary shares to be issued in this private placement will be subject to a six-month lock-up period, with certain customary exceptions.

The strategic investment is designed to significantly broaden the collaborative framework between the two companies, deepening the existing relationship into a more integrated, strategic global partnership. Both companies will initially focus on deploying ECARX's Pikes® computing platform and Cloudpeak® cross-domain software stack with full Google Automotive Services integration in Lotus Tech's vehicles globally – accelerating ECARX's global expansion.

Mr. Ziyu Shen, Chief Executive Officer and Chairman of ECARX, commented, "This strategic investment represents a natural and significant step forward in our evolving partnership with Lotus Tech, building upon the deep technical collaboration we already share. Lotus is an iconic brand with strong global recognition, and I remain optimistic about its growth potential in international markets. I look forward to seeing our Pikes computing platform combined with our world-leading Cloudpeak software platform empower Lotus to establish a robust foundation for the next-generation intelligent driving experience worldwide."

Mr. Qingfeng Feng, Chief Executive Officer of Lotus Tech, commented, "This investment strengthens our long-standing partnership with ECARX, a pivotal collaborator in our mission to redefine in-vehicle intelligence. This strengthened partnership underscores the deepened global collaboration with ECARX and our shared unwavering commitment to accelerate innovation of next-generation intelligent cockpit ecosystems to deliver unparalleled AI-driven experiences. It also demonstrates a strong vote of confidence in our long-term value creation for shareholders." 

The securities offered in this private placement have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or any state or other applicable jurisdiction's securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions' securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About ECARX

ECARX (Nasdaq: ECX) is a global automotive technology provider with capabilities to deliver turnkey solutions for next‑generation smart vehicles, from the system‑on‑a‑chip (SoC) to central computing platforms and software. As automakers develop new vehicle architectures, ECARX is developing full‑stack solutions to enhance the user experience while reducing complexity and cost.

Founded in 2017 and listed on Nasdaq in 2022, ECARX now has over 1,500 employees based in 13 major locations in China, UK, USA, Brazil, Singapore, Malaysia, Sweden and Germany. The co‑founders are two automotive entrepreneurs: Chairman and CEO Ziyu Shen and Eric Li (Li Shufu), who is also the founder and chairman of Zhejiang Geely Holding Group. To date, ECARX products can be found in approximately 10 million vehicles worldwide.

About Lotus Technology Inc.

Lotus Technology Inc. has operations across the UK, the EU and China. The Company is dedicated to delivering luxury lifestyle electric vehicles, with a focus on world-class R&D in next-generation automobility technologies such as electrification, digitalisation and more. For more information about Lotus Technology Inc., please visit www.group-lotus.com.

Forward-Looking Statements

This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expect", "intend", "will", "estimate", "anticipate", "believe", "predict", "potential", "forecast", "plan", "seek", "future", "propose" or "continue", or the negatives of these terms or variations of them or similar terminology although not all forward-looking statements contain such terminology. Forward-looking statements involve inherent risks and uncertainties, including those identified under the heading "Risk Factors" in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Lotus Technology Inc. undertakes no obligation to update any forward-looking statement, except as required under applicable law.

Investor Contacts:
ir@ecarxgroup.com 

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SOURCE ECARX Holdings Inc.

FAQ

What did ECARX (ECX) announce about its investment in Lotus Technology (LOT) on December 23, 2025?

ECARX agreed to invest US$23 million via a private placement to subscribe for 16,788,321 Lotus shares at US$1.37 per share.

When is the ECARX investment in Lotus (ECX → LOT) expected to close?

The investment is expected to close within 30 days following the December 23, 2025 subscription agreement.

What are the share issuance and lock-up terms for ECARX's Lotus (LOT) private placement?

Lotus will issue 16,788,321 ordinary shares at US$1.37 each; the shares will be subject to a six-month lock-up with customary exceptions.

How will ECARX's technology be used after the US$23M investment in Lotus (LOT)?

Both companies will focus on deploying ECARX's Pikes computing platform and Cloudpeak cross-domain software with full Google Automotive Services integration in Lotus vehicles globally.

Does the ECARX private placement in Lotus (LOT) allow immediate resale in the U.S.?

No; the securities were not registered under the U.S. Securities Act and may not be offered or sold in the U.S. absent registration or an applicable exemption.