Lotus's venture into the electric car market has faced a challenging beginning. Although the financial figures for the initial six months of 2024 indicate a significant rise in vehicle shipments compared to the previous year, the firm has slashed its delivery projections by more than half. Concurrently, its financial deficits are escalating. Lotus Technology, the publicly listed entity spun off from Lotus Group tasked with manufacturing and marketing vehicles, had initially anticipated dispatching approximately 26,000 units this year.
"Following an evaluation of the changing market dynamics and the challenges introduced by fresh tariff regulations in the US and EU, we have adjusted our delivery goal for 2024 to 12,000 vehicles," Lotus Tech disclosed in a statement issued on Wednesday. The company has distributed 4,873 vehicles worldwide since the beginning of the year, marking a 239% surge compared to 2023. This upswing is linked to the commencement of deliveries for Lotus's latest electric models, the Electre SUV and the Emeya sedan. The brand has sold 2,389 sedans and SUVs in 2024, a stark increase from the 871 units sold in 2023.
Shipments of the conventional Lotus Emira sports car have also skyrocketed during the first half of this year. Lotus has sold 2,484 units in 2024, a significant leap from the 568 cars sold the previous year. This is likely attributable to the company's ability to initiate deliveries in the US following prolonged delays due to emission standards. Despite a substantial increase in revenue to match the sales—$225 million for the quarter compared to $111 million last year—Lotus's net loss has expanded. It reported a $202 million loss for the quarter, up from $193 million last year. The company attributes this rise to sales and marketing outlays associated with its expansion, as reported by Automotive News.
Fortunately, there is still a glimmer of hope. Lotus has introduced a strategy dubbed "Win26," aimed at "enhancing its internal processes and structures, executing comprehensive cost-saving measures, and revising its product strategies to serve a globally diverse market," with the objective of achieving positive operating cash flow and EBITDA by 2026. Amidst diminishing demand for electric vehicles, only time will reveal if the brand can reverse its fortunes.
