Lotus Technology Q2 Earnings Call Highlights

Lotus Technology Q2 Earnings Call Highlights Posted by Defense World Staff on Aug 29th, 2026 Share on Twitter Share on Facebook Share on LinkedIn Share on Stocktwits Get alerts: Lotus Technology (NASDAQ:LOT) reported higher first-half deliveries and revenue for 2026, while narrowing its operating and net losses as the luxury automaker emphasized its new multi-powertrain strategy, cost controls and integration with Lotus UK and the Geely ecosystem.

The company delivered 3,904 vehicles in the first half, up 39% from a year earlier. Revenue increased 23% to $268 million, supported by delivery growth and momentum in China. Average selling price declined 3% year over year, which Chief Financial Officer Daxue Wang attributed to a greater proportion of deliveries from the lower-priced Eletre X plug-in hybrid model. Gross margin improved to 10%, up 1.6 percentage points from the prior-year period, while gross profit rose 47% year over year to $26 million. Wang said the improvement reflected product-mix changes, supply-chain synergies and scale benefits that reduced per-vehicle manufacturing costs.

Losses Narrow Amid Cost Controls Lotus said its operating loss narrowed 63% year over year to $95 million in the first half. The company said the result included a one-time licensee refund related to product-pipeline adjustments. Excluding one-off effects, operating loss narrowed 26% to $195 million, according to Wang. Adjusted EBITDA loss narrowed 57% to $104 million, compared with a $240 million loss a year earlier. Operating expenses fell 46% to $127.5 million, although the reported figure included the impact of the one-time item. Excluding that adjustment, research-and-development expense was $96 million, up 4% year over year, driven by investment in the Eletre X. Selling and marketing expense increased 5% to $83 million as sales commissions and launch-related marketing costs rose, while general and administrative expense declined 27% to $46 million.

Wang said Lotus intends to pursue profitability through product positioning, mix optimization and cost-reduction measures. He added that more than 50% of components in its lifestyle vehicles are shared with Geely, enabling the company to use Geely’s centralized procurement and supplier network.

China Leads Delivery Growth as Eletre X Ramps Lifestyle vehicles represented 77% of Lotus deliveries during the period. China deliveries rose 60% year over year and accounted for 58% of total deliveries, remaining the company’s largest market. Deliveries outside China increased 17.4%, including 45% growth in the Americas and 164% growth in other regions. European deliveries declined 17% amid intensifying competition in luxury battery-electric vehicles.

Chief Executive Officer Qingfeng Feng said the Eletre X, known in China as For Me, has been central to the company’s domestic performance. As of June 30, Lotus had received 2,200 cumulative orders for the model in China and delivered more than 1,800 units. The company said 63% of buyers were new Lotus customers and more than 70% selected higher-specification versions. Feng said Lotus’ share of China’s passenger vehicle market above RMB 500,000 reached nearly 2% in the second quarter following the model’s late-March launch. The company plans to begin Eletre X deliveries in Europe during the fourth quarter and in Middle East markets in December. U.K. launches are planned for mid-2027.

Management said it expects the hybrid model to generate a higher gross margin than its pure-electric vehicles because of its smaller battery pack, lower bill-of-materials cost, platform sharing with Geely and expected scale improvements as production reaches steadier volumes.

Focus 2030 Targets Volume Growth and Profitability Lotus outlined its Focus 2030 strategy, which centers on preserving its performance-oriented brand identity, offering electric, hybrid and internal-combustion powertrains, expanding operational synergies and improving financial results. Annual sales vol...