Lotus's entry into the electric car market has been challenging. Although the financial results for the first half of 2024 indicate a significant rise in deliveries compared to last year, the company has slashed its delivery forecast by more than half. Concurrently, its losses continue to escalate. Lotus Technology, the publicly traded entity spun off from Lotus Group, which is in charge of manufacturing and selling cars, initially anticipated delivering approximately 26,000 vehicles this year.
"Following an evaluation of the changing market dynamics and the uncertainties introduced by new tariff regulations in the US and EU, we have adjusted our delivery goal for 2024 to 12,000 units," Lotus Tech announced in a statement released on Wednesday. The company has managed to sell 4,873 cars worldwide this year, marking a 239% increase from 2023. This surge is largely due to the commencement of deliveries for Lotus's two new electric models, the Electre SUV and the Emeya sedan. Sales of these sedans and SUVs have reached 2,389 units in 2024, up from a mere 871 units in 2023.
Deliveries of the gasoline-powered Lotus Emira sports car have also seen a dramatic increase in the first half of this year. Lotus has sold 2,484 units in 2024, a significant jump from the 568 cars sold in the previous year. This is likely attributable to the company's ability to start US deliveries after overcoming years of emissions-related delays. 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 increase to selling and marketing expenses associated with its expansion, as reported by Automotive News.
Fortunately, there is still hope. Lotus has initiated a plan called "Win26," which is designed to "enhance its internal processes and structures, implement comprehensive cost-saving measures, and adjust its product strategies to meet the needs of diverse global markets," with the aim of achieving positive operating cash flow and EBITDA by 2026. As demand for EVs declines, only time will reveal whether the brand can reverse its fortunes.
