Lotus Technology Battles Mounting Losses Amid US Tariff Pressures

Lotus Technology Inc., the arm of luxury electric vehicles of the iconic British brand, reported a 70% increase in global vehicle deliveries in 2024, which reached 12,065 units. However, this growth has been eclipsed by a net loss of $ 667 million during the first nine months of the year, driven by the growing operating costs and the impact of US tariffs on imported vehicles.

Despite the impressive delivery figures, the company’s financial health remains precarious. The income doubled more than $ 653 million compared to the same period in 2023, but the gross margins decreased to 9% of 11%, which highlights the challenges of maintaining profitability in a volatile market. Operating losses increased by 18% year after year, which underlines the tension in the final result of the company.

The US market, a significant destination for lotus vehicles, has become increasingly challenging due to 25% reintroduction or tariffs in imported cars. These rates, part of broader protectionist measures, have interrupted global supply chains and increased costs for manufacturers. Lotus, which exports a substantial portion of its vehicles to the US.

Financial director Daxue Wang attributed the financial recession to global commercial uncertainties and growing rates. The company is experiencing strategic cost optimizations and operational adjustments, especially as it integrates its United Kingdom sports cars division with its Chinese electric car unit. Geely Holdings, Lotus’s majority shareholder, has reinforced its control by activating a Lotus Technology Inc. repurchase clause to acquire total participation in its advanced technologies unit.

In response to these challenges, Lotus has intensified its focus on the Chinese market, which represented approximately 25% of global deliveries in 2024. The company successfully claimed its registered brand rights in China, ensuring the consistency of the brand and strengthening its position in the largest automotive market in the world. In addition, Lotus has been expanding its product portfolio, introducing models such as Make and Eretre, and presenting its “Hyper Hybrid EV” technology in the Guangzhou auto show.