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Lotus Technology Q4 2024 Earnings Report
Lotus Technology reported a decrease in revenue and gross margin, alongside an increase in net loss for the fourth quarter of 2024.
Key Takeaways
Lotus Technology Inc. announced its unaudited financial results for the fourth quarter and full year ended December 31, 2024. The company reported a total revenue of $272 million for Q4 2024, a 25% decrease year-over-year, and a gross margin of -11%. Net loss increased significantly by 97% to $441 million.
Total revenues for Q4 2024 were $272 million, down 25% YoY.
Gross margin for Q4 2024 was -11%, compared to 19% in Q4 2023.
Operating loss for Q4 2024 was $189 million, narrowed by 17% YoY.
Net loss for Q4 2024 was $441 million, a 97% YoY increase.
Lotus Technology
Lotus Technology
Forward Guidance
The company expects to consolidate the entire global business of the Lotus brand by acquiring a majority interest in Lotus UK upon the closing of Geely's put option, which is expected to be completed in 2025, subject to potential regulatory approvals.
Positive Outlook
- Expected consolidation of the entire global business of the Lotus brand by acquiring a majority interest in Lotus UK.
- Strategic transaction will enable the Company to integrate all global business under the Lotus brand.
- Continued efforts to streamline operations and optimize resource allocation.
- Initiated strategic cost optimization to improve profitability.
- Commitment to driving cost streamlining and operational enhancements across all markets.
Challenges Ahead
- Acquisition of Lotus UK is subject to potential regulatory approvals.
- Gross margin was lower in 2024 due to tariff impact and proactive destock in response to global trade uncertainties.
- Intensifying market competition and economic downturn in China.
- Global trade uncertainties continue to pose challenges.
- Need to continuously deliver long-term value amidst market challenges.