Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Lotus Technology Inc (LOT, Financial) delivered over 12,000 vehicles in 2024, marking a 70% year-on-year increase.
- The company achieved a 36% year-on-year revenue increase to USD 924 million for the full year.
- Lotus Technology Inc (LOT) has reduced operational expenses for five consecutive quarters.
- The company expanded its market presence, with Europe seeing a 180% increase in deliveries, contributing nearly 40% of total deliveries.
- Lotus Technology Inc (LOT) launched a revolutionary concept car made with sustainable materials, highlighting its commitment to sustainability.
Negative Points
- Fourth-quarter revenue decreased by 12% year-on-year to USD 272 million.
- The gross profit margin was negative 11% for the fourth quarter and only 3% for the full year.
- Lotus Technology Inc (LOT) reported an operating loss of USD 786 million for the year and USD 189 million for the fourth quarter.
- The company faces challenges due to high tariffs in the US, affecting its lifestyle vehicle exports.
- Lotus Technology Inc (LOT) has a high debt-to-asset ratio, raising concerns about financial stability.
Q & A Highlights
Q: Are there any plans to create a lighter, high-performance version of the EMIRA for the US market, similar to Porsche's GT3 models?
A: (Qingfeng Feng, CEO) The US is the largest market for EMIRA, and we recognize the demand for higher horsepower models. While we don't plan to increase the V6's power due to EU 7 emission compliance, we are exploring a V8 option. We have launched limited editions with reduced weight in Europe and will consider similar models for the US.
Q: Can you provide an update on revenue guidance and the contribution of the robotics division?
A: (Dauxe Wang, CFO) For 2025, we expect improvements over 2024, pending board approval. The robotics division achieved significant growth, generating USD 22 million from external customers, with a high profit margin compared to our goods sales.
Q: What is the margin trajectory for 2025 and 2026, and how are tariffs impacting production?
A: (Dauxe Wang, CFO) We expect improved margins in 2025 due to better product cost structures and no longer needing stock clearing. Tariffs have affected our lifestyle vehicles produced in China, halting exports to the US, but our UK-produced sports cars remain unaffected.
Q: What caused the decline in gross profit in Q4 2024, and how did intelligent driving services contribute?
A: (Dauxe Wang, CFO) The decline was due to stock clearing and tariff impacts. An accounting policy change for intelligent driving services also affected figures. We expect gross margins to recover under new policies, with improved alignment in the service sector.
Q: What is Lotus's strategy for the US market amid geopolitical tensions and tariffs, and what are the sales targets?
A: (Qingfeng Feng, CEO) Despite challenges, we maintain our sports car sales plans in the US, expecting a loss of 200-300 units due to tariffs. The US remains a priority market, and we are exploring manufacturing options there to mitigate tariff impacts.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
