Lotus Technology Inc., the electric-car maker majority-owned by China’s Geely, has slashed its annual delivery target by more than half amid tariffs o
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Lotus Technology Inc., the electric-car maker majority-owned by China’s Geely, has slashed its annual delivery target by more than half amid tariffs on Chinese-made EVs and weaker demand.
The company, which listed in February after being spun out as the EV arm of the British sports-car maker, said Wednesday it now expects to deliver 12,000 vehicles this year. It had previously been targeting 26,000.
Lotus Technology’s shares fell as much as 4.3 per cent in early New York trading, having already lost almost half their value since listing.
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The lower target follows plans by the US and the European Union to impose tariffs on EVs imported from China, where Lotus Technology is based and manufactures some models. The EU, which has accused China of providing carmakers unfair subsidies, raised the prospect of levies as manufacturers like BYD Co. started to push more aggressively into Europe with cheaper EVs.
The outlook cut is a blow to investors who backed the company when it listed in February. At the time, Lotus said its range of luxury EV models and a tie-up with luxury goods giant LVMH would help it avoid the same struggles as rivals.
Zhejiang Geely Holding Group, the automotive empire of billionaire Li Shufu, rescued Lotus in 2017 after the carmaker suffered from consumers’ shift to SUVs. The company is building electric models that cost between $80,000 and $150,000, including more SUVs.
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The British sports-car division is separate from the listed entity and remains wholly owned by Geely.
Geely has faced similar problems with other brands it has backed amid the broader slowdown in EV demand. Polestar has lost about 90 per cent of its value since spinning out of Volvo Car AB two years ago.
Geely also has stakes in Mercedes-Benz Group AG and Aston Martin Lagonda Global Holdings Plc.
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First Published Date: 01 Sep 2024, 08:17 AM IST