Lotus Technology Inc., the luxury electric vehicle arm of the iconic British marque, reported a 70% surge in global vehicle deliveries in 2024, reaching 12,065 units. However, this growth has been overshadowed by a net loss of $667 million for the first nine months of the year, driven by escalating operational costs and the impact of US tariffs on imported vehicles.
Despite the impressive delivery figures, the company’s financial health remains precarious. Revenues more than doubled to $653 million compared to the same period in 2023, yet gross margins declined to 9% from 11%, highlighting the challenges of maintaining profitability in a volatile market. Operating losses increased by 18% year-on-year, underscoring the strain on the company’s bottom line.
The US market, a significant destination for Lotus vehicles, has become increasingly challenging due to the reintroduction of 25% tariffs on imported cars. These tariffs, part of broader protectionist measures, have disrupted global supply chains and increased costs for manufacturers. Lotus, which exports a substantial portion of its vehicles to the US, has been directly affected, leading to strategic cost-cutting measures, including the elimination of 270 jobs.
Chief Financial Officer Daxue Wang attributed the financial downturn to global trade uncertainties and rising tariffs. The company is undergoing strategic cost optimizations and operational adjustments, especially as it integrates its UK sports car division with its Chinese electric car unit. Geely Holdings, Lotus’s majority shareholder, has reinforced its control by activating a buyback clause from Lotus Technology Inc. to acquire a full stake in its advanced technologies unit.
In response to these challenges, Lotus has intensified its focus on the Chinese market, which accounted for approximately 25% of global deliveries in 2024. The company successfully reclaimed its trademark rights in China, ensuring brand consistency and strengthening its position in the world’s largest automotive market. Additionally, Lotus has been expanding its product portfolio, introducing models like the Emeya and Eletre, and unveiling its “Hyper Hybrid EV technology” at the Guangzhou Auto Show.
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