Image credit: Bamboo Works
Key Takeaways:
Geely-owned Lotus Technology's revenue dropped 44% in 2025 to $519 million, while its deliveries decreased 46%
The company's first plug-in hybrid vehicle marks a retreat from its all-EV promise, and its distressed balance sheet raises questions about its viability without parental support
For a company whose brand is synonymous with lightweight engineering and razor-sharp handling, Lotus Technology Inc. (NASDAQ:LOT) is carrying a lot of excess baggage these days.
The latest annual results from the Geely-owned (0175.HK) electric-vehicle (EV) unit of the legendary British sports car maker show its financial health is improving somewhat, at least in terms of profitability. But it doesn't take much digging to discover the company's business remains very much on life support, as it navigates a brutal EV price war that has prompted a drastic strategic shift and left its balance sheet in distress.
Lotus managed to narrow its net loss by 58% for 2025 to $464 million, according to the results released last Friday. The fourth quarter was especially good in that regard, as its net loss shrank more than 80% year-over-year to $86 million. In the company's earnings announcement, CFO Wang Daxue touted "improved margin performance" on the back of "cost optimization and operational efficiency."
And indeed, Lotus' gross margin swung from a negative 11% in the fourth quarter of 2024 to a positive 10% for the most recent reporting period. Its full-year gross margin also tripled to 9% from 3%. This seems like progress that puts the company on a promising trajectory. But it is progress from a very deep hole, and the path to profitability doesn't look easy.
The most glaring problem is the company's collapsing top line. Lotus Technology's total revenue for 2025 plunged 44% to $519 million, with deliveries dropping 46% to just 6,520 vehicles. To put the latter figure in perspective, rival luxury brand Ferrari (RACE.MI) shipped more than 13,000 units last year even as it underwent a significant portfolio makeover. The more mainstream Tesla (TSLA.US) moves more cars in an average two-day span than what Lotus sold in all of last year. Even Polestar (PSNY.US), another ...
