Lotus Technology (LOT) Q2 2024 earnings summary

Executive summary

• Delivered 4,900 vehicles and achieved $398M in revenue for H1 2024, both record highs, with deliveries up 239% year-over-year.

• Maintained average selling price above $100,000 per unit despite intensified competition.

• Launched new high-margin ADAS technology revenue stream and bespoke personalization services, with global OEM partnerships.

• Recognized as the top-performing British luxury car brand in 1H24 by deliveries and won Red Dot Awards for product design.

• Adjusted 2024 delivery target to 12,000 units due to U.S. and EU tariffs and trade uncertainties.

Financial highlights

• H1 2024 revenue: $398M, up 206% year-over-year; Q2 revenue: $225M, up 103% year-over-year.

• Gross margin for H1: 13% (vs. 5% prior year); Q2 gross margin: 9% (vs. 5%).

• Operating loss: $438M (up 27% year-over-year); net loss: $460M; adjusted net loss (non-GAAP): $424M.

• Adjusted EBITDA loss (non-GAAP): $382M in H1; $177M in Q2.

• Service revenue gross margin rose to 58% from 16% year-over-year, driven by ADAS and technology income.

Outlook and guidance

• FY2024 delivery target revised to 12,000 units due to U.S. and EU tariffs, still targeting over 70% year-over-year growth.

• Q3 and Q4 expected deliveries: 3,000–4,000 units per quarter.

• Win26 plan targets positive operating cash flow and EBITDA by 2026, with 30,000 annual deliveries and >20% gross margin.

• Two new models to launch in 2025 and 2026, contributing to revenue and profitability from 2026 onward.

• Focus on maintaining luxury positioning, pricing integrity, and brand equity amid evolving market conditions.