Lotus Technology Inc. American Depositary Shares

In the first half of 2026, deliveries were 3,904 units, up 39% year over year. Revenue rose 23% year over year to USD 268 million, gross profit increased 47% to USD 26 million, and gross margin expanded to 10% from 8% in the prior-year period. Cost of revenues was USD 242 million, operating expenses were USD 127.5 million, operating loss narrowed 63% to USD 97 million, net loss narrowed 52%, and adjusted EBITDA loss narrowed 57% to USD 104 million. Management said, excluding one-off items, operating loss narrowed 26% year over year to USD 195 million. For the full year / longer term, the company reiterated Focus 2030 goals of 30,000 annual sales, gross margin above 20% by 2030, and positive EBITDA; it also said Eletre X deliveries in Europe start in Q4 and the U.K. launch follows in mid-2027, while Middle East deliveries are expected by year-end.

CEO Qingfeng Feng framed the quarter as evidence that Focus 2030 is starting to work, pointing to stronger core operating metrics, a broader product portfolio and global channel expansion. He emphasized the company’s shift to a multi-powertrain strategy, saying Lotus is now pursuing pure electric, hybrid and ICE products in parallel to match uneven global demand. His tone was confident and strategic, with repeated references to brand heritage, motorsports credibility, and the Type 135 as a future flagship that could lift the brand and profit profile.

CFO Daxue Wang focused on the financial bridge from volume and mix to profitability. He said first-half deliveries rose 39% to 3,904 units, revenue rose 23% to USD 268 million, gross profit rose 47% to USD 26 million, and gross margin reached 10%; he also noted operating loss narrowed to USD 97 million, or USD 195 million excluding one-off items, and adjusted EBITDA loss narrowed to USD 104 million. Wang attributed gross margin improvement to a richer PHEV mix and lower per-vehicle costs from Geely supply-chain and manufacturing synergies, while also flagging that chip price volatility added nearly 2% to BOM costs in the first half. On Lotus UK, he said consolidation should lift top line and gross margin, though near-term inclusion of UK R&D and admin costs could widen group-level losses before integration benefits flow through.

Analysts pressed on the For Me PHEV launch, asking about orders, deliveries and full-year expectations; management said China cumulative orders were 2,200 units, deliveries exceeded 1,800, and 63% of buyers were new to Lotus, with over 70% choosing the highest-spec version. On the Type 135, management said it is still in development but is intended to fill the gap between Emira and Evija, return Lotus to mid-engine V8 performance, and support both brand and profit growth. Another major question was the Focus 2030 targets and Lotus UK acquisition: management said the goals are based on brand, channels and product breadth, while the UK acquisition should bring gross vehicle revenue and service revenue onto the consolidated statements, though near-term costs may lift losses and restated 2025 consolidated financials will be disclosed no later than the 2026 annual report. Brian Lantier asked about margin improvement and chip costs; management said mix and scale drove the margin gain, while chip-driven BOM inflation added pressure but is expected to ease around late 2026 and early 2027.