Lotus electric-car venture posts losses despite new models
09/06/2024 07:00 PM
They say it takes money to make money, which could explain why the electric arm of Lotus saw its losses widen for the second quarter of 2024, even after deliveries of its two new models began.
Lotus Technology, the electric-vehicle focussed offshoot of the British sportscar company, has reported a large net loss in its finances – despite launching two new models in the past year.
Majority owned by Geely, the Lotus Group is now made up of three subsidiaries: Lotus Cars, developing high-performance sports cars, Lotus Engineering, a consultancy firm, and Lotus Technology, which is tasked with creating electric vehicles.
Lotus Technology has reported a net loss of $US202 million ($AU301 million) for the second quarter of 2024 – up from $US193 million ($AU288 million) for 2023.
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However, representatives for Lotus Technology told Automotive News the widening loss could be attributed to marketing expenses related to entering new regions.
The company has reported an increase of 239 per cent in sales compared with 2023, thanks to deliveries of the Eletre SUV and Emeya sedan beginning – alongside its electric hypercar, the Lotus Evija.
But despite the reported loss, revenue is looking much healthier at Lotus Technology, with $US225 million ($AU336 million) being reported for the quarter – more than double the brand’s entire revenue for 2023.
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