Recent Investment from Geely Supports Infrastructure Build Out for ECARX Holdings (ECX)

ECARX Holdings Inc. (NASDAQ:ECX) is one of the best stocks under $3 to invest in. On January 12, Chinese car maker Geely Investment Holding Ltd. agreed to invest $45.6 million into ECARX Holdings Inc. (NASDAQ:ECX), through the purchase of 27,297,002 newly issued Class A ordinary shares of ECARX at $1.67 per share. The transaction is expected to close soon, subject to customary conditions, and the purchased shares will be subject to a six-month lock-up period.

“Following the two project wins from Volkswagen Group last year and our deepened strategic partnership with Lotus Tech, this investment will support the build out of our R&D hub in Germany and infrastructure across key growth markets in South America and Southeast Asia, providing us with the R&D, delivery, and supply chain capabilities to fuel our global expansion,” ECARX Holdings Inc. (NASDAQ:ECX) Chief Executive Officer and Chairman Ziyu Shen said in a statement about the transaction.

ECARX Holdings Inc. (NASDAQ:ECX) is an automotive computing platform builder, focused on building technology for smart mobility in China and internationally. Its core products include infotainment head units, autonomous driving control units, digital cockpits, vehicle chip-set solutions, core operating systems, and an integrated software stack.

While we acknowledge the potential of ECX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 11 Best Stocks Under $3 to Buy Right Now and  10 Most Undervalued Stocks to Buy and Hold for 5 Years

Disclosure: None. This article is originally published at Insider Monkey.