Automotive News Europe — 2024-08-28
Automotive Industry
Lotus Tech said its net loss widened to $202 m in the April-June 2024 period from $193 m a year earlier.
Lotus Technology, the British electric-car maker majority-owned by China’s Geely, slashed its deliveries forecast for the year by more than 50%, citing uncertainty posed by new tariffs in the United States and the European Union.
Import tariffs imposed by the EU, the US and Canada on China-made EVs have added pressure on companies manufacturing their vehicles in China, adding to costs.
The company, which listed in February after being spun out as the EV arm of the British sports-car maker Lotus Group, said it now expects to deliver 12,000 vehicles in 2024. It had previously been targeting 26,000.
"After assessment of the evolving market conditions, and uncertainties posed by new tariff policies in US and EU, the company has revised its delivery target for 2024 to 12,000 units," Lotus said on 28 August 2024.
The outlook cut is a blow to investors who backed the company when it listed in February 2024. At the time, Lotus said its range of luxury EV models and a tie-up with luxury goods giant LVMH would help it avoid the same struggles as rivals.
Deliveries for the three months ended on 30 June 2024 were 2,679, compared with 2,194 vehicles in the first quarter, Lotus said. Revenue for the quarter was $225 m, compared with $111 m a year earlier.
Lotus Tech said its net loss widened to $202 m in the April-June 2024 period from $193 m a year earlier. The company said its plans to expand and enter into new regions have led to higher selling and marketing expenses, which rose 73% to $204.3 m in the quarter.
Lotus Tech is headquartered in the Chinese city of Wuhan and produces all-electric lifestyle vehicles through a partnership with Chinese parent Geely.
Lotus Tech was valued at about $7 bn in a deal with a special purpose acquisition company when it went public in February 2024, but its value has since fallen to about $3.8 bn.
The British sports-car division is separate from the listed entity and remains wholly-owned by Geely.
Zhejiang Geely Holding Group, the automotive empire of billionaire Li Shufu, rescued Lotus in 2017 after the carmaker suffered from consumers’ shift to SUVs. The company is building electric models that cost between $80,000 and $150,000, including more SUVs.
Geely has faced similar problems with other brands it has backed amid the broader slowdown in EV demand. Polestar has lost about 90% of its value since spinning out of Volvo Cars two years ago.
Geely also has stakes in Mercedes-Benz Group and British sports-car maker Aston Martin.
Reuters and Bloomberg contributed to this report