Lotus Technology (LOT) Q2 2024 earnings summary

Executive summary

• Delivered 4,900 vehicles and achieved $398M in revenue for H1 2024, both record highs, with deliveries up 239% year-over-year and strong US market re-entry contributing 26% of total deliveries.

• Maintained average selling price above $100,000 per unit despite intensified competition and rapid growth.

• Launched new high-margin ADAS technology revenue stream and bespoke services, with growing external OEM adoption and expanded technology-related income.

• Revised FY2024 delivery guidance to 12,000 units due to tariff impacts and market conditions, introducing the "Win26" plan targeting positive EBITDA and operating cash flow by 2026.

• Recognized as the top-performing British luxury car brand in 1H24 by deliveries and launched limited edition and one-off models to enhance luxury positioning.

Financial highlights

• H1 2024 revenue: $398M, up 206% year-over-year; Q2 revenue: $225M, up 103% year-over-year.

• H1 gross margin: 13% (vs. 5% prior year); Q2 gross margin: 9% (vs. 5% prior year); service revenue gross margin rose to 58% from 16% year-over-year.

• H1 operating loss: $438M, up 27% year-over-year; net loss: $460M; adjusted net loss: $424M; Q2 net loss: $202M.

• Adjusted EBITDA loss (H1): $382M, up 15% year-over-year; Q2 adjusted EBITDA loss: $177M.

• H1 EPS: -$0.75; Q2 EPS: -$0.30.

Outlook and guidance

• FY2024 delivery target revised to 12,000 units, reflecting over 70% year-over-year growth, with Q3 and Q4 delivery targets of 3,000–4,000 units per quarter.

• Win26 plan targets positive operating cash flow and EBITDA by 2026, with 30,000 annual deliveries and >20% gross margin.

• Two new models to launch in 2025 and 2026, contributing to revenue and profitability from 2026 onward.

• Focus on maintaining luxury positioning, pricing integrity, and brand equity amid evolving market conditions and new tariffs.