Lotus Technology 1H 2024 Financial Results

[Nick in Sydney]

https://ir.group-lotus.com/news-releases/news-release-details/lotus-technology-reports-unaudited-second-quarter-and-first-half

Lotus is trying to put a positive spin on the results, but they're ugly.

-- Total 1H deliveries of 4,873 units
-- Lifestyle/SUV were 2,389 and sports cars were 2,484
-- 1,278 deliveries in the USA so far this year, presumably all Emiras
-- Profitability is heading in the wrong direction. Operating loss of -$438M vs -$344M in 1H 2023
-- Gross margin went backward vs Q4 which they blame on Emira cost inflation
-- Have lowered the 2024 delivery target down to 12,000 vehicles, blamed on US and Europe tariff hikes
-- Have started "Win26" plan, which includes cost-cutting and "recalibrating product plans for globally diverse markets"

Presumably, this means more job cuts and perhaps a decision not to sell certain models in some countries. I wonder whether the BEVs won't be sold in the USA due to the new tariffs.

 

[WindJunkie]

Yikes. They are bleeding with these numbers. I really love my Emira and I am rooting for the Lotus business to thrive, but these numbers are alarming for sure.

 

[Eagle7]

Probably half of those deliveries to the U.S. were at the original FE price for those who had put in their deposits when the Emira was first announced. The electric vehicles aren't going to pan out. Ford said they lost $44,000 on every one they sold, and they're going back to ICE and starting up hybrid production.

Geely needs to get Lotus partnered up with somebody for a service solution in the U.S., so people can have reasonable access for service needs.

 

[benjh1028]

If they want to focus on the EV game, I think Lotus should partner with an old friend to bring this car to market a bit sooner. They would learn quite a bit along the way (not just technical but how to run a business):

Project V | Caterham

A bold new design, driver-focused, lightweight and fun to drive. This is Project V. Register your interest with Caterham.

caterhamcars.com

 

[JimH]

Don't forget that Lotus Cars Limited (i.e. the Hethel, Norfolk, UK manufacturing operation) still runs independent accounts and stands somewhat apart from Lotus Technology to whom they sort of represent a part owned/.funded supplier, I believe...

LOTUS CARS LIMITED overview - Find and update company information - GOV.UK

LOTUS CARS LIMITED - Free company information from Companies House including registered office address, filing history, accounts, annual return, officers, charges, business activity

find-and-update.company-information.service.gov.uk

No 2023 accounts filed yet though....

 

[Nova]

With operating earnings coming in at about 1/10th of operating expenses, I don't see *ANY* way they can actually begin to turn a profit realistically. They would have to increase sales 10 fold while not increasing any operating expenses - or reduce operating expenses to 1/10th while maintaining similar sales volume.

Looked another way, Lotus spent more money operating as a business than they did on the cost of producing the cars they sell.

 

[Tokion]

Designer Anthony Jannarelly on the outside, and yours truly on the inside. This is a hellova lightweight and desirable sportscar.

 

[JClem]

Anecdotally, Lotus will have incurred a sizeable loss on my Emira.

 

[benjh1028]

Designer Anthony Jannarelly on the outside, and yours truly on the inside. This is a hellova lightweight and desirable sportscar.

Would love to hear more of your impressions!

 

[seriously]

US will be pushing hard against Chinese EVs as Canada recently announced they would also. I wonder if Lotus gets caught up in this web although they are trying to sell to the luxury market and not undercutting entry level EVs.

Not good. Lotus EVs we’re supposed to launch Lotus into the black. I don’t see that happening. Can they possibly make money on the emira alone? I don’t think even porcshe would survive on the cayman alone. Their survival it seems is based on how well it competes as a brand outside of North America.

 

[idleuser]

At this rate, Lotus is not long for this world. Let's hope the company can turn the ship around

 

[Six Speed Stephen]

It's all a matter of how long Geely wants to subsidize Lotus at this point. I really hope they pull out a hybrid variant of their EV range.

 

[Cwolf]

At this rate, Lotus is not long for this world. Let's hope the company can turn the ship around

I agree. Concerning as an owner.

 

[Lotustoronto]

Anyone have a transcript of the earnings call or a link to listen? Can’t seem to find one.

 

[DenzilP]

Anyone have a transcript of the earnings call or a link to listen? Can’t seem to find one.

https://ir.group-lotus.com/events/event-details/lotus-technology-inc-first-half-2024-earnings-conference-call

 

[scc.131.fe]

It's all a matter of how long Geely wants to subsidize Lotus at this point. I really hope they pull out a hybrid variant of their EV range.

100% agree that it's all about the want. Look up Aston Martin's history - the only reason that company lives today is that a handful of receiverships were met by newcomers who simply 'wanted' the company to survive... with their money. Sure glad they did!

 

[Lotustoronto]

Can’t see Eletre or Emeya coming to US/CAN. Unless they expand Hethel to build some EV’s for that market. Which isn’t impossible but unlikely.

 

[Cwolf]

Would everyone on this thread still buy an Emira if you knew the financial data that we know today?

 

[idleuser]

Would everyone on this thread still buy an Emira if you knew the financial data that we know today?

Yes.

 

[Blackthought_]

So lotus being a bad company definitely does not surprise me LOL but if the company goes under (and is not bought by another company), what happens to our manufacturer warranty? Parts availability? (Eg body panels etc, not the Toyota parts)