Lotus Technology (NASDAQ: LOT), the EV firm, slashed its deliveries forecast for the year by more than 50% on Wednesday, citing uncertainty posed by new tariffs in the United States and the European Union.
Import tariffs imposed by the European Union, the United States, and Canada on China-made EVs have added pressure on companies manufacturing their vehicles in China, adding to costs.
“After assessment of the evolving market conditions, and uncertainties posed by new tariff policies in the U.S. and EU, the company has revised its delivery target for 2024 to 12,000 units,” the company said.
The company is headquartered in the Chinese city of Wuhan and produces cars through a partnership with parent firm Geely.
Lotus Technology (NASDAQ: LOT), which focuses on all-electric lifestyle vehicles, is part of British sports car maker Lotus Group, which is owned by Chinese automaker Geely and Malaysia’s Etika Automotive.
The company was valued at about $7 billion in a deal with a special purpose acquisition company when it went public in February, but its value has since fallen to about $3.8 billion.
After China and Europe, the company began taking orders for the Eletre SUV in markets across the Middle East, Asia, and the Americas.
Deliveries for the three months ended June 30 stood at 2,679 units, compared with 2,194 vehicles in the first quarter.
Revenue for the second quarter was $225 million, compared with $111 million a year earlier.
Lotus Technology said its net loss widened to $202 million in the April-June period from $193 million a year earlier.
Its plans to expand and entry into new regions have led to higher selling and marketing expenses, which rose 73% to $204.3 million in the quarter.
(Source: ReutersReuters)
