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April 8 (Reuters) – Lotus Technology Inc reported a sequential quarterly profit on Monday, less than two months after its IPO, due to strong demand for its luxury electric cars.
This increase in profits has come despite demand for electric cars growing at a slower-than-expected pace, and high interest rates discouraging buyers from making large purchases.
The company was valued at about $7 billion under a deal with special purpose acquisition company L Catterton Asia Acquisition Corp when it went public in February.
Lotus Tech is owned by British sports car maker Lotus Group, owned by Chinese automaker Geely and Malaysian automaker Etika Automotive.
The company is headquartered in the Chinese city of Wuhan and produces cars through a partnership with Geely.
It rose to $361 million in the fourth quarter, up from $188 million in the July-September period.
Deliveries for the three months ended December 31, 2023 increased to 3749 units, up 110% from the previous 3-month period. By 2024, Lotus Tech expects deliveries to triple to 26,000 units.
Lotus Tech began deliveries of the Emeya electric grand tourer last month in China and plans to start delivering the vehicle in Europe in the third quarter. Its Eletre electric SUV is also expected to launch in the U. S. This year.
The company’s net loss widened to $224 million in the December quarter, with a loss of $174 million in the third quarter.
In the fourth quarter, its gross margin increased to 19% from 15% in the previous quarter. The company expects a gross margin of 17% to 19% in 2024.
Lotus Tech’s monetary balance fell to $418. 9 million at the end of 2023 from $736. 6 million a year earlier. (Reporting via Akash Sriram in Bengaluru; editing by Osmond)