Lotus Technology (LOT) AI Stock Analysis

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Lotus Technology

(NASDAQ:LOT)

Rating:40Underperform

Price Target:

$2.00

▲(2.04% Upside)

Lotus Technology's overall stock score is primarily influenced by its weak financial performance and poor valuation metrics. The technical analysis supports a bearish outlook, and the absence of earnings call and corporate events data does not provide any offsetting positive factors.

Lotus Technology (LOT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.33B

Dividend YieldN/A

Average Volume (3M)91.84K

Price to Earnings (P/E)―

Beta (1Y)1.34

Revenue Growth57.34%

EPS Growth-82.19%

CountryUS

Employees1,996

SectorConsumer Cyclical

Sector Strength72

IndustryAuto - Manufacturers

Share Statistics

EPS (TTM)N/A

Shares Outstanding678,257,300

10 Day Avg. Volume113,310

30 Day Avg. Volume91,842

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap2.90

Enterprise Value/Revenue3.80

Enterprise Value/Gross Profit30.19

Enterprise Value/Ebitda-4.90

Forecast

1Y Price Target

$2.00

Price Target Upside2.04% Upside

Rating ConsensusModerate Sell

Number of Analyst Covering1

Lotus Technology Business Overview & Revenue Model

Company DescriptionLotus Technology Inc. engagers in the design, development, and sale of sports luxury lifestyle battery electric vehicles. It offers electric sports car models, including Eletre and Emeya. The company is based in Shanghai, China.

How the Company Makes MoneyLotus Technology generates revenue primarily through the sale of its luxury electric vehicles. The company's key revenue streams include direct sales to consumers, as well as partnerships with dealerships and distributors worldwide. Additionally, Lotus Technology may engage in strategic collaborations with other automotive and technology companies to enhance its product offerings and expand market reach. The company's earnings are also supported by its commitment to research and development, which drives innovation and helps maintain its competitive edge in the rapidly evolving EV market.

Lotus Technology Earnings Call Summary

Earnings Call Date:Jun 25, 2025

(Q3-2024)

% Change Since: -19.01%|

Next Earnings Date:Aug 27, 2025

Earnings Call Sentiment Neutral

Lotus Technology showed strong revenue growth and vehicle delivery figures, driven by its expanding ADAS business and strategic market entries. However, the company faced challenges with declining gross profit margins and increased losses, exacerbated by inventory issues, particularly in Europe.

Q3-2024 Updates

Positive Updates

Significant Revenue Growth

Lotus Technology achieved total revenue of $653 million in the first nine months of 2024, marking a 105% year-over-year increase.

Record Vehicle Deliveries

In the third quarter, 2,744 units were delivered, representing a 54% year-over-year increase.

ADAS Business Expansion

Revenue from the intelligent driving business reached $11 million in the first nine months, with a year-over-year growth of 450%.

Service Revenue Increase

Service revenue was $29 million, a 129% year-over-year increase, with a gross margin of 55% compared to 28% last year.

New Market Entries and Infrastructure Expansion

Lotus expanded its charging infrastructure in Europe with more than 300,000 stations and continues to invest in China with over 18,000 stations.

Operating Expense Reduction

Operating loss decreased by 22% quarter-over-quarter, showcasing effective cost management strategies.

Negative Updates

Decline in Gross Profit Margin

Gross profit margin was 3% in the third quarter, down from 15% in the same period last year, mainly due to inventory management challenges.

Increased Operating and Net Loss

Operating loss was $598 million, an 18% year-over-year increase, while net loss was $667 million, a 19% increase compared to last year.

Challenges in European Stock Levels

The company is facing challenges with unhealthy stock levels in Europe which may impact new model launches.

Company Guidance

During the Lotus Technology Inc. Q3 2024 earnings call, the company reported delivering over 7,600 vehicles in the first nine months, generating $653 million in total revenue. In Q3 alone, 2,700 units were delivered, marking a 54% year-over-year increase, while sales revenue reached $255 million, up 36% year-over-year. Notably, the company's intelligent driving business, with ADAS technology, contributed $11 million, reflecting a 450% year-over-year growth. However, the gross profit margin decreased to 9% for the first nine months and slid further to 3% in Q3, largely due to inventory management challenges amidst trade protectionism and inflation. The company aims for a 20% gross profit margin by 2026, forecasting sales of over 30,000 units, supported by new model launches and strategic market expansions.

Lotus Technology Financial Statement Overview

Summary

Lotus Technology faces significant financial challenges with negative profitability trends, insolvency risks due to negative stockholders' equity, and severe cash flow issues. Revenue growth is present, but it fails to translate into profits or positive cash flows.

Income Statement

Very Negative

Lotus Technology shows a significant negative profitability trend with increasing net losses over the years. The revenue growth is notable, especially from 2022 to 2023, but the company is unable to convert this growth into profits. High negative EBIT and EBITDA margins indicate substantial operational challenges.

Balance Sheet

Very Negative

The balance sheet reveals a critical financial position with negative stockholders' equity, indicating insolvency risks. The debt-to-equity ratio is not meaningful due to negative equity, but the high total debt levels suggest the company is heavily reliant on debt financing, posing a risk in terms of financial stability.

Cash Flow

Negative

The cash flow statement highlights severe cash flow challenges, with negative operating cash flow and a declining free cash flow trend. The company’s operating cash flow and free cash flow remain negative, indicating difficulties in generating cash through operations, despite significant financing inflows.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	924.35M	679.01M	9.56M	3.69M
Gross Profit	29.63M	102.18M	-25.87M	557.00K
EBITDA	-969.96M	-680.98M	-687.85M	-110.89M
Net Income	-1.10B	-742.00M	-723.92M	-110.53M
Balance Sheet
Total Assets	2.29B	1.58B	1.58B	287.63M
Cash, Cash Equivalents and Short-Term Investments	482.36M	422.94M	739.00M	591.20K
Total Debt	1.19B	942.04M	658.60M	218.27M
Total Liabilities	3.15B	2.41B	1.66B	22.25M
Stockholders Equity	-860.23M	-821.77M	-83.96M	-21.15M
Cash Flow
Free Cash Flow	-905.86M	-600.65M	-484.99M	-35.81M
Operating Cash Flow	-848.52M	-386.93M	-351.58M	-1.22M
Investing Cash Flow	-579.44M	-197.99M	-149.34M	-286.64M
Financing Cash Flow	1.46B	284.71M	758.34M	288.46M

Lotus Technology Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.96

Price Trends

50DMA

2.18

Negative

100DMA

1.95

Positive

200DMA

2.65

Negative

Market Momentum

MACD

-0.06

Positive

RSI

40.67

Neutral

STOCH

39.20

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOT, the sentiment is Negative. The current price of 1.96 is below the 20-day moving average (MA) of 2.15, below the 50-day MA of 2.18, and below the 200-day MA of 2.65, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 40.67 is Neutral, neither overbought nor oversold. The STOCH value of 39.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LOT.

Lotus Technology Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$16.99B	10.66	-7.51%	3.25%	1.53%	-15.49%
XPEV	53 Neutral	$19.25B	―	-15.52%	―	50.45%	49.81%
NIO	51 Neutral	$10.15B	―	-240.42%	―	23.39%	3.93%
VFS	46 Neutral	$8.09B	―	36.15%	―	110.83%	-66.73%
LCID	45 Neutral	$6.73B	―	-54.39%	―	39.01%	7.11%
RIVN	44 Neutral	$14.31B	―	-54.42%	―	2.73%	45.63%
LOT	40 Underperform	$1.33B	―	90.29%	―	57.34%	-82.19%

* Consumer Cyclical Sector Average

Performance Comparison

LOT

Lotus Technology

1.96

-3.21

-62.09%

NIO

Nio

4.91

1.15

30.59%

XPEV

XPeng, Inc. ADR

21.38

14.75

222.47%

LCID

Lucid Group

2.19

-0.71

-24.48%

VFS

VinFast Auto

3.48

-0.21

-5.69%

RIVN

Rivian Automotive

11.93

-1.46

-10.90%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 02, 2025