China EV Maker Lotus Posts Smaller Loss; Stock Climbs 5%

Chinese luxury EV maker Lotus Technology saw its stock jump 5% to a seven-week high today after reporting a significantly narrowed loss. The company's loss for the first half of 2026 shrank by 52% to $151 million, while revenue increased 23% to $268 million, driven by a 39% rise in vehicle deliveries to 3,904 units. This positive performance, following a new plug-in hybrid EV launch, contributes to China's growing dominance in the global EV market, which accounted for 70% of worldwide production in 2025. Billionaire Li Shufu, a key shareholder whose Geely Group also owns brands like Volvo and Polestar, benefits from Lotus's success. The Nasdaq-traded shares are up over 50% from their recent July low.

Shares in Lotus Technology, a Chinese luxury EV maker whose shareholders include billionaire Li Shufu, rose to a more than seven-week high today after the company said its loss narrowed by more than half in the first six months of 2026 compared with a year ago. The red ink narrowed by 52% to $151 million. Revenue rose by 23% to $268 million as the company increased its vehicle deliveries by 39% to 3,904 units following the launch of a new plug-in hybrid EV. The company’s Nasdaq-traded shares rose by 5% to $125 today, and have climbed by more than half from their recent July 31 low.

Gains by Lotus are part of a growing dominance of the global EV market by China. The country accounted for 70% worldwide EV production in 2025, according to a report by the International Energy Agency. Other leaders include BYD and Li Auto. Some 58% of revenue at Lotus came from China. Besides Lotus, other brands associated with Li’s Zhejiang Geely Group include Volvo, Polestar – a Volvo spinoff, Zeekr, and mainland Chinese domestic flagship Geely Auto. Li stepped down as chairman of Geely Auto this month. Li holds a fortune worth $16 billion on the Forbes Real-Time Billionaires List today, making him the eighth richest person in the auto industry globally. Other Chinese billionaires in the top 10 include BYD Chairman Wang Chuanfu ($22.4 billion) and Liu Xiangyang ($17.8 billion) also of BYD.

The Lotus brand was founded in the UK in 1948 and acquired in 2017 by an entity 51% owned by Li’s Geely and 49% by Malaysia’s Etika Automotive. Lotus Technology Inc. then went public in 2023 through a merger with L Catterton Asia Acquisition Corp, a special purpose acquisition company, or SPAC, formed by affiliates of L Catterton, global consumer-focused investment firm.