Lotus Technology issues $110M bond

[Nick in Sydney]

https://ir.group-lotus.com/news-releases/news-release-details/lotus-technology-secures-investment-strategic-investor

Lotus just raised $110M from Geely International.

I'm sorry to add more fuel to the fire, but I don't think it's a good sign that the newly listed group needs another $110M only six months after the SPAC was completed. It's pretty obvious that they're burning through masses amounts of cash.

 

[Andy H]

Trying to be positive: this would be a far worse story if Geely weren't bailing Lotus out. Just hope this is a rough patch that Lotus can emerge from.

 

[Nick in Sydney]

Trying to be positive: this would be a far worse story if Geely weren't bailing Lotus out. Just hope this is a rough patch that Lotus can emerge from.

Agree. But I fear Lotus has made a serious strategic error with Eletre and Emeya . . . pitched too far upmarket for the Lotus brand and at least five years too early for 100% BEV. They should have launched a hybrid, priced to compete with the Macan.

 

[Andy H]

Agreed. Also, given its principles and heritage, Lotus seems to be the last brand you would want to associate with a 2 tonne electric SUV.

 

[dgrace]

If memory serves, the plan was to sell 50000 Eletres / yr. I just don't see how you get from here to there, even before you take tariffs into account.

Notably, the Emira is the only model that's selling consistently. The numbers for the Eletre/Emeya actually dropped from Q4 2023.

 

[Time2Fly]

50,000 $150,000 cars without the advertised range and without the infrastructure to provide the advertised best charting rate.

 

[Citizen]

This numbers were wet dreams from first day

 

[Porter]

The press release just specifies "strategic shareholder". Why are you sure it was Geely, and not Etika Automotive (Malaysia)?

 

[EZcheezy]

"lifestyle vehicles". such a weird name for them

 

[Nick in Sydney]

The press release just specifies "strategic shareholder". Why are you sure it was Geely, and not Etika Automotive (Malaysia)?

It's disclosed in the SEC's Form 6-K.

I thought it was interesting that they dodged naming Geely in the press release. Perhaps a sign that the Chinese are a bit embarrassed (and pissed off) about having to plow $100M back into the business just after they divested a chunk.