Lotus Technology (NASDAQ:LOT) CFO Daxue Wang outlined the luxury automaker’s electrification strategy, first-half performance improvements and longer-term profitability targets during a company presentation.
Wang said Lotus, founded in 1948, is seeking to build on its heritage in Formula 1, sports cars, aerodynamics and lightweight vehicle design while expanding its lineup of electrified lifestyle vehicles. The company has operated under Geely ownership since 2017, a period Wang described as the start of Lotus’ electrification journey.
Lotus now operates through two product pillars, according to Wang: internal-combustion sports cars made in the United Kingdom and electrified models designed and produced in China for global markets. The company has expanded its sales network to more than 60 markets and over 300 dealers, he said.
First-Half Progress and Product Plans
Wang said first-half deliveries increased nearly 40% from a year earlier. He also said gross margin improved from the single digits to more than 10%, while net loss narrowed by more than 60%.
The company currently has five platform models, including internal-combustion sports cars and three electric vehicles. Lotus is also developing a next-generation hybrid sports car. Wang said a plug-in hybrid electric vehicle launched in China this year is expected to begin deliveries in continental Europe in November.
Among the company’s current models, Wang referenced the Evija, Emira and an updated Emira 420 version with 420 horsepower. He also highlighted Lotus’ electric GT sedan and plug-in hybrid offerings.
Lotus plans to introduce a next-generation plug-in hybrid sports car in 2028, Wang said. The vehicle is expected to combine a V8 engine with electric motors and deliver more than 1,000 horsepower. He said the company has received favorable early feedback from dealers and existing sports-car customers.
Focus 2030 Strategy
Wang said Lotus’ Focus 2030 strategy emphasizes flexibility across powertrains, continued emphasis on driving performance, use of technology and improved financial discipline. He said customer demand differs by geography and operating conditions, requiring the company to offer internal-combustion, battery-electric and plug-in hybrid options.
While Lotus is adopting artificial intelligence and autonomous-driving technologies, Wang said the company believes driving engagement will remain central to its brand. He argued that as autonomous driving becomes more common, manufacturers with deep engineering expertise in vehicle handling and drivability could become increasingly differentiated.
“If everybody is relying on autonomous driving,” Wang said, companies with “a deep culture and a deep understanding for drivability” could become more important.
The company is also relying on support from Geely in research and development, manufacturing, logistics and supply chains. Wang said Lotus reduced manufacturing costs by 50% this year compared with last year by sharing an assembly line with a Geely model.
Profitability Target
Wang acknowledged that Lotus has faced high debt levels and losses, but said the company’s five-year plan is intended to move the business toward sustainable profitability. He said Lotus expects to become EBIT-positive before 2030 if it can reach annual deliveries of between 20,000 and 30,000 vehicles and achieve a 20% gross profit margin.
“The first half of this year,” Wang said, “we are kind of really on the right way” in terms of delivery growth, revenue expansion and loss reduction. He noted, however, that the company’s outlook is a multiyear plan rather than strict annual guidance.
Integration and U.S. Market Opportunity
In August, Lotus Technology completed its acquisition of a stake in Lotus UK, Wang said. The transaction is intended to better align the brand and its operations across manufacturing and other functions.
Wang said the U.S. market represents a significant opportunity, though Lotus currently sells primarily sports cars in the country. While the company has completed homologation for its SUVs and battery-electric vehicles, he said tariffs make large-scale sales of those models in the United States difficult at acceptable pricing.
Lotus would be able to respond quickly if barriers were reduced, Wang said, adding that the company wants to preserve its distinct focus on safety, durability, driving performance and vehicle engineering as competition in the automotive market intensifies.
About Lotus Technology (NASDAQ:LOT)
Lotus Technology Inc is a technology-focused automotive company that develops and sells premium battery-electric vehicles under the Lotus brand. Its activities include vehicle design, engineering, intelligent driving and connectivity technologies, manufacturing coordination, sales, and after-sales services.
The company’s product portfolio includes the Eletre electric hyper-SUV and the Emeya electric hyper-GT. It is also associated with Lotus’s broader performance-car lineup, including the Evija electric hypercar.
