Lotus Tech Reports USD202 Million Losses After Record Deliveries
Lotus Tech is part of Lotus Group and has been delivering sexy looking electric vehicles this past year around the globe
Reuters has just shared financial news on Lotus Tech and it looks like despite its sales success, its financials are not looking healthy.
The company has its headquarters in the Chinese city of Wuhan and produces cars through a partnership with parent firm Geely.
In case you were wondering, Lotus Tech, which focuses on all-electric lifestyle vehicles, is part of British sports car maker Lotus Group, which is owned by Chinese automaker Geely and Malaysia’s Etika Automotive.
The company was valued at about USD$7 billion in a deal with a special purpose acquisition company when it went public in February this year, but its value has since fallen to about USD$3.8 billion.
After China and Europe, the company began taking orders for the Eletre SUV in markets across the Malaysia, Middle East, most of Asia and the Americas.
Deliveries for the three months ended June 30 stood at 2,679 units, compared with 2,194 vehicles in the first quarter.
Revenue for the second quarter was USD$225 million, compared with USD$111 million a year earlier.
Lotus Tech said its net loss widened to USD$202 million in the April to June period from USD$193 million a year earlier.
Its plans to expand and make an entry into new regions have led to higher selling and marketing expenses, which rose a whopping 73 percent to USD$204.3 million in the quarter.
With their electric vehicles (EV) being made in China, and the 100 percent tariffs being slapped on Chinese-made EVs by the US and Canada, and 37 percent tariffs in the EU, it seems it will be much tougher for Lotus Cars to find success by primarily becoming an EV maker with Chinese based manufacturing.
Meanwhile, the Chapman Bespoke service which as started just in April 2024 provides Lotus customer personalization, design customizations, limited collection editions, and one-off models, was also launched to cater to growing demand. Deliveries of bespoke models are expected to further boost the brand’s luxury positioning and contribute to the Company’s long-term premium gross margin.
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