ECARX (ECX) Plunges 11.74% on Q3 Revenue Miss, Deteriorating Financials

ECARX Holdings Inc. (NASDAQ: ECX) plunged 11.74% in pre-market trading on November 10, 2025, as investors reacted to a string of concerning financial disclosures and broader market uncertainty.

The selloff follows a Q3 revenue miss of $219.9M, significantly below the FactSet estimate of $271.7M, raising questions about the company’s operational efficiency and growth trajectory. Analysts highlight a deteriorating financial profile, including a negative price-to-book ratio of -6.25, retained earnings of -$6.67B, and a working capital deficit of -$923.91M. These metrics underscore structural challenges, with technical indicators reinforcing bearish sentiment through declining price levels and weak volume patterns.

Key support levels have emerged around $2.20, while resistance remains contested near $2.60. Trading strategies suggest caution, with short positions advised if the stock breaks below $2.30. The company’s ability to pivot strategically or demonstrate improved operational execution will be critical in determining whether this downward momentum stabilizes or persists.

A hypothetical trading strategy based on recent price behavior might involve shorting ECX below $2.30 with a stop-loss at $2.50 to capture potential downside. This approach aligns with the observed downtrend and weak momentum, though risks remain elevated due to the stock’s high volatility and lack of clear catalysts for reversal. Historical data from similar scenarios suggests such strategies could yield gains if the stock continues to underperform, but execution depends on sustained bearish sentiment and no material positive developments.