Lotus - summary of financial situation

A decent, simplified summary of Lotus' financial situation. Pretty bleak outlook. If I was a betting man I would say the brand will no longer exist by 2028 unless they build a game-changing model. I found this part of the article to be quite amusing:

In the first-quarter, Lotus delivered just 1,282 vehicles worldwide, or 42% fewer than the same period in the prior year; the shortfall may partly reflect efforts to clear dealer stocks to make room for updated models.

https://archive.is/20250512042043/https://www.bloomberg.com/opinion/articles/2025-05-12/trade-war-has-lotus-sportscars-driving-on-fumes#selection-2015.0-2019.151

 

[sixtyy]

thats sad. The car I built was under tariff days before arrival and I had to choose an already built car from a different dealership.

 

[Six Speed Stephen]

Which will expire first? Our warranty or the brand's solvency?

 

[dgedition]

This is why I was surprised of all the talk about a V8 after looking through the financials

 

[MiamiBlue]

They've been here before. Another company usually buys them and keeps the life support on for a few more years.
I would hate to see the brand die, especially with such a rich history.

I very very much doubt we'll see any new models in the foreseeable future. Probably just more special editions of fundamentally the same car.

 

[dgedition]

They've been here before. Another company usually buys them and keeps the life support on for a few more years.
I would hate to see the brand die, especially with such a rich history.

I very very much doubt we'll see any new models in the foreseeable future. Probably just more special editions of fundamentally the same car.

Scary part on this go around is they are a much larger company so its harder for a group to justify grabbing them up.

I hope things turn around because its a blast to drive!

 

[GreyGhost_1776]

Seems they need to get back to their roots. Some downsizing / restructuring on the horizon at minimum.

 

[idleuser]

Geely is the big loser here. Can they continue to subsidize Lotus?

 

[seriously]

Yeah. I'm assuming someone buys Lotus at a discount and Geely pays the price.

 

[Teshoo Lama]

Lotus China EVs in the USA was never going to happen and never will. I can't imagine their US Emira presence is seen as anything more than a global brand building exercise. I guess we'll find out soon just how strategically committed Geely are to this vision.

I was always sceptical, but I see so many Eletres around West London nowadays that I sometimes wonder if Geely aren't on to something. It wouldn't surprise me to see them stick with the plan for a while.

The biggest blow for the company, arguably, has been their horrible battery tech and efficiency, rather than Emira sales. I'd say the branding exercise is going quite well, and the EVs certainly have appeal to some luxury buyers. They're imposing vehicles, with stunning interiors, but practicality is real constraint on sales. I'm surprised the Chinese got this so wrong.

Lotus UK will always have value as a boutique sports car manufacturer and heritage brand, and generally favourable UK-US relations should always ensure their market access. Even if Geely give up, I'm sure (ok, I hope) there will always be another investor with a dream and the arrogance to believe they can succeed where others failed.

 

[PatrickJS]

This is why I was surprised of all the talk about a V8 after looking through the financials

well now we know that was a desperate comment (red flags)

 

[Emira Fan]

Lotus Tech's Losses Increased to More than $1 Billion Last Year​

The automaker now needs a cash injection to keep the lights on


That's a huge loss for such a small company. Wonder who might be interesting in buying this poorly run brand/company next. VW?

 

[crestima]

Hmm, how about I a management buyout of the 3 perilous automakers to form McLotus Martin offering a full lineup of specialized ICE sports cars.

 

[MTV]

Me as CEO

1. Drop the Electric cars now and all costs associated with it. It could be resurrected in the future if required.!!!!!
2. Look at viability of PEV or anything for the Eletre and get an SUV out there. Seems to be the approach that has save other brands.
3. Spend the effort on turning the Emira base into a super car. V8 etc. Modify it slightly. Maybe call it the new Esprit
4. Make a Targa version of the Emira.
5. Further tuning parts and options on new models. Do what Porsche do. Also sell tuning parts to current owners
6. Throw a V10 or V12 or a decent Hybrid V8 in the Evija and get the price down.
7. Promote the brand with movie placement. eg another Bond car. Just so people remember the brand exists.

 

[Emira Fan]

[Promote the brand with movie placement. eg another Bond car. Just so people remember the brand exists.]

Yes, Lotus's brand awareness team is asleep at the wheel. The Emira is a masterpiece; would pair well in a Bond movie.

They also completely missed the boat with the US auto magazines. They let all the Mag's review the AMG Demo car in 2022-23 and it was let-down, 360HP and screwed up DTC.

When the revised car finally hit the shore in the US with ~420HP +new DTC mapping ...... No /zero push to get back in front of the US auto testers....really shameful. Only one minor one-pager in Jan 2025 C&D (drivelines) relegated to back of magazine....sad

 

[MTV]

[Promote the brand with movie placement. eg another Bond car. Just so people remember the brand exists.]

Yes, Lotus's brand awareness team is asleep at the wheel. The Emira is a masterpiece; would pair well in a Bond movie.

They also completely missed the boat with the US auto magazines. They let all the Mag's review the AMG Demo car in 2022-23 and it was let-down, 360HP and screwed up DTC.

When the revised car finally hit the shore in the US with ~420HP +new DTC mapping ...... No /zero push to get back in front of the US auto testers....really shameful. Only one minor one-pager in Jan 2025 C&D (drivelines) relegated to back of magazine....sad

Yes, still wonder what some of these current CEO's are thinking, eg, no idea. My simply business rule has always been simple.
"Take care of your staff, take care of your customers and the money comes"
Most CEOs these days are simply woke people who did an MBA and with no real idea how the world really works. They have no interest except for their own personal political ideologies.

What you've mentioned is simply unacceptable and sounds like a company very disconnected internally and externally.

 

[MattG]

Aside from the US' China EV tariffs, the problem with a Lotus EV is they were trying to go too far upmarket too quickly. They tried to be Porsche before building up the brand enough. I wonder if they could just focus on selling simpler, FUN cars (EV included) and not focus as much on luxury (Eletre, Emeya). Even the Emira is more complex than it needs to be.

 

[Nick in Sydney]

Yeah. I'm assuming someone buys Lotus at a discount and Geely pays the price.

The money has been burned, so it's now a sunk cost. I don't think Geely will exit. I'm betting that they wash out the Malaysians, L Catterton, and other shareholders and fold Lotus fully into Geely Group.