Lotus Technology (LOT) AI Stock Analysis

• Market Cap: $988.17M
• Dividend Yield: N/A
• Average Volume (3M): 77.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: -38.55%
• EPS Growth: 21.59%
• Country: US
• Employees: 1,996
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -0.10
• Shares Outstanding: 678,705,300
• 10 Day Avg. Volume: 52,659
• 30 Day Avg. Volume: 77,487
• PEG Ratio: -0.04
• Price to Book (P/B): -2.71
• Price to Sales (P/S): 2.52
• P/FCF Ratio: -2.57
• Enterprise Value/Market Cap: 3.16
• Enterprise Value/Revenue: 3.38
• Enterprise Value/Gross Profit: 105.72
• Enterprise Value/Ebitda: -3.23
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $1.50 ▲(13.64% Upside)

Lotus Technology's overall stock score is primarily impacted by its poor financial performance, characterized by negative profitability and cash flow issues. While there are some positive signals from the earnings call, such as improved margins and strategic initiatives, these are overshadowed by significant year-on-year declines in key metrics and a challenging valuation profile.

Positive Factors

Improving gross margin

Sustained margin improvement signals structural cost and mix progress: lower cost of revenue and operational efficiencies can expand gross profit per vehicle as volumes recover. Over 2-6 months, improved product economics support better cash conversion and resilience versus peers.

Launch of first PHEV (product diversification)

Introducing a plug-in hybrid diversifies powertrain revenue and reduces exposure to pure-EV market cycles. It broadens addressable customers, aids regulatory compliance across markets, and supports overseas rollouts—structural drivers for steadier demand and margin mix over coming quarters.

Strategic investment and partnership with ECARX

A $23M strategic equity investment from a technology partner strengthens collaboration on in-vehicle AI and digital cockpits, aligning product roadmaps and unlocking integration synergies. The capital and deeper partnership support product development and commercial traction over the medium term.

Negative Factors

Negative stockholders' equity (insolvency risk)

Persistently negative equity reflects accumulated losses and weak capitalization, limiting borrowing capacity and strategic flexibility. Over months this restricts investment in product launches, increases refinancing risk, and can force dilutive financing or asset sales to sustain operations.

Negative operating cash flow and declining FCF

Ongoing negative operating cash flow and falling free cash flow mean the business cannot self-fund growth or capex, making it reliant on external financing. This structural cash shortfall raises solvency and execution risk for launches, supply agreements, and global retail expansion.

Material control weaknesses and auditor change

Reported material weaknesses in reporting controls and a board-led auditor change signal governance and accounting reliability issues. These increase regulatory scrutiny, raise the risk of restatements, and can impede investor confidence and large partner contracts over the medium term.

Lotus Technology Business Overview & Revenue Model

Company Description

Lotus 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 Money

Lotus Technology generates revenue through multiple key streams, primarily from the sale of electric vehicles and related components, including batteries and software solutions for autonomous driving. The company partners with various automotive manufacturers and tech firms to integrate its technology into their platforms, creating additional revenue through licensing agreements and joint ventures. Additionally, Lotus Technology invests in research and development to stay ahead of industry trends, which enhances its product offerings and drives sales growth. The company also explores opportunities in fleet sales and subscription services for its mobility solutions, further diversifying its income sources.

Lotus Technology Financial Statement Overview

Summary

Lotus Technology is facing significant financial challenges, with negative profitability trends, insolvency risks due to negative equity, and severe cash flow issues. Despite revenue growth, the company struggles with high leverage and operational inefficiencies.

Income Statement

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

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

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	1.32B
Cash, Cash Equivalents and Short-Term Investments	482.36M	422.94M	739.00M	531.45M
Total Debt	1.19B	942.04M	658.60M	218.27M
Total Liabilities	3.15B	2.41B	1.66B	1.12B
Stockholders Equity	-860.23M	-821.77M	-83.96M	195.32M
Cash Flow
Free Cash Flow	-905.86M	-600.65M	-484.99M	-161.09M
Operating Cash Flow	-848.52M	-386.93M	-351.58M	-126.50M
Investing Cash Flow	-579.44M	-197.99M	-149.34M	244.48M
Financing Cash Flow	1.46B	284.71M	758.34M	364.85M

Lotus Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.32
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOT, the sentiment is Positive. The current price of 1.32 is below the 20-day moving average (MA) of 1.39, below the 50-day MA of 1.38, and below the 200-day MA of 1.83, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.80 is Neutral, neither overbought nor oversold. The STOCH value of 60.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LOT.

Lotus Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RIVN	53 Neutral	$20.44B	-5.36	-65.28%	―	28.21%	44.43%
XPEV	50 Neutral	$19.69B	-49.60	-9.01%	―	86.57%	51.35%
NIO	45 Neutral	$10.55B	-3.24	-296.45%	―	14.94%	2.53%
PSNY	45 Neutral	$2.08B	-0.58	―	―	―	―
LOT	43 Neutral	$988.17M	-1.19	―	―	-38.55%	21.59%
LCID	41 Neutral	$3.28B	-0.94	-61.12%	―	45.86%	22.13%

Lotus Technology Corporate Events

Lotus Technology Replaces KPMG With Grant Thornton as Auditor Amid Control Weaknesses

On December 31, 2025, Lotus Technology Inc. announced that its board and audit committee had dismissed KPMG Huazhen LLP as its independent registered public accounting firm and appointed Grant Thornton Zhitong Certified Public Accountants LLP to audit the company’s consolidated financial statements for the fiscal year ended December 31, 2025. The company stated that KPMG’s prior audit reports for 2023 and 2024 contained no adverse or disclaimed opinions, but did highlight substantial doubt about Lotus Technology’s ability to continue as a going concern due to accumulated losses, net current liabilities and negative operating cash flow, and identified material weaknesses in financial reporting controls and revenue and inventory processes at its EU and UK subsidiaries. Lotus noted there were no disagreements with KPMG on accounting or audit matters, no reportable events beyond the disclosed control weaknesses, and no prior consultations with Grant Thornton on accounting issues, and said it is working with both firms to ensure a smooth transition, underscoring the company’s effort to address internal control issues and shore up financial reporting as it remains under investor and regulatory scrutiny.

The most recent analyst rating on (LOT) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Lotus Technology stock, see the LOT Stock Forecast page.

Lotus Technology Secures US$23 Million Strategic Investment from ECARX to Deepen Intelligent Mobility Partnership

On December 23, 2025, Lotus Technology Inc. signed a share subscription agreement with ECARX Holdings Inc., under which ECARX will invest US$23 million via a private placement of 16,788,321 newly issued Lotus Tech ordinary shares at US$1.37 per share, subject to customary closing conditions and a six-month lock-up on the new shares. The deal, announced on December 29, 2025, is intended to deepen the companies’ long-standing technical partnership into a more integrated global collaboration around intelligent cockpit and in-vehicle AI technologies, signaling confidence in Lotus Tech’s long-term growth prospects and reinforcing its positioning in the competitive smart EV and intelligent driving ecosystem.

The most recent analyst rating on (LOT) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Lotus Technology stock, see the LOT Stock Forecast page.

Lotus Technology Reports Q3 2025 Financials and Strategic Advances

Lotus Technology Inc. reported its unaudited financial results for the third quarter and first nine months of 2025, highlighting a total revenue of $356 million and a gross margin improvement to 8%. Despite a 46% year-over-year revenue decline, the company narrowed its net loss by 43% and is preparing to launch a new PHEV model to enhance its electrification strategy. The company is also advancing its strategic acquisition of Lotus UK, expected to close in 2026, to integrate operations under the Lotus brand and improve efficiency. Recent achievements include a strong presence at IAA Mobility 2025, successful participation in the Lotus GT Racing Series, and victories at the Macau Grand Prix.

The most recent analyst rating on (LOT) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on Lotus Technology stock, see the LOT Stock Forecast page.