Lotus Technology (LOT) AI Stock Analysis

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Lotus Technology

(NASDAQ:LOT)

Rating:53Neutral

Price Target:

$2.00

▼( -6.10% Downside)

Lotus Technology's overall score is primarily driven by its challenging financial performance, which significantly impacts the company's stability and future prospects. While short-term technical indicators are positive, they are overshadowed by severe financial weaknesses and valuation concerns.

Lotus Technology (LOT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.44B

Dividend YieldN/A

Average Volume (3M)166.40K

Price to Earnings (P/E)―

Beta (1Y)1.22

Revenue Growth154.07%

EPS Growth-255.47%

CountryUS

Employees1,996

SectorFinancial

Sector Strength82

IndustryAuto - Manufacturers

Share Statistics

EPS (TTM)-1.72

Shares Outstanding678,244,300

10 Day Avg. Volume214,381

30 Day Avg. Volume166,399

Financial Highlights & Ratios

PEG Ratio0.10

Price to Book (P/B)-1.56

Price to Sales (P/S)0.00

P/FCF Ratio-2.24

Enterprise Value/Market Cap1.43

Enterprise Value/Revenue0.55

Enterprise Value/Gross Profit16.08

Enterprise Value/Ebitda-0.67

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Lotus Technology Business Overview & Revenue Model

Company DescriptionLotus 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 MoneyLotus Technology generates revenue primarily through the sale of its electric vehicles, which are marketed as premium, high-performance cars. The company capitalizes on its brand reputation and engineering prowess to attract customers seeking luxury and environmentally conscious automotive solutions. Additionally, Lotus Technology may engage in strategic partnerships and collaborations with other automotive and technology companies to enhance its product offerings and expand its market reach. Revenue is also likely supplemented by services related to vehicle maintenance, software updates, and possibly through licensing deals for its proprietary technologies. The company's focus on innovation and sustainability positions it to benefit from the growing global demand for electric vehicles and related technologies.

Lotus Technology Financial Statement Overview

Summary

Lotus Technology faces significant financial challenges. Despite strong revenue growth, the company struggles with profitability and cash flow issues, high leverage, and negative stockholders' equity, suggesting a need for strategic realignment.

Income Statement

Very Negative

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

Very Negative

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

Negative

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Breakdown
Income Statement		Total Revenue
1.02B	924.35M	679.01M	9.56M	3.69M
	Gross Profit
127.96M	29.63M	102.18M	-25.87M	557.00K
	EBIT
-830.14M	-786.32M	-735.94M	-743.59M	-1.06M
	EBITDA
-788.62M	-969.96M	-680.98M	-687.85M	-110.89M
	Net Income Common Stockholders
-889.81M	-1.10B	-742.00M	-723.92M	-110.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
426.81M	482.36M	422.94M	739.00M	591.20K
	Total Assets
1.79B	2.29B	1.58B	1.58B	287.63M
	Total Debt
942.04M	1.19B	942.04M	658.60M	218.27M
	Net Debt
515.23M	704.46M	523.10M	-80.39M	217.68M
	Total Liabilities
2.53B	3.15B	2.41B	1.66B	22.25M
	Stockholders Equity
-821.77M	-860.23M	-821.77M	-83.96M	-21.15M
Cash Flow		Free Cash Flow
-603.74M	-905.86M	-600.65M	-484.99M	-35.81M
	Operating Cash Flow
-389.75M	-848.52M	-386.93M	-351.58M	-1.22M
	Investing Cash Flow
-273.40M	-579.44M	-197.99M	-149.34M	-286.64M
	Financing Cash Flow
362.55M	1.46B	284.71M	758.34M	288.46M

Lotus Technology Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price2.13

Price Trends

50DMA

1.68

Positive

100DMA

2.21

Negative

200DMA

3.43

Negative

Market Momentum

MACD

0.16

Negative

RSI

58.68

Neutral

STOCH

45.74

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOT, the sentiment is Neutral. The current price of 2.13 is above the 20-day moving average (MA) of 1.99, above the 50-day MA of 1.68, and below the 200-day MA of 3.43, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 58.68 is Neutral, neither overbought nor oversold. The STOCH value of 45.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LOT.

Lotus Technology Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.64B	9.78	7.67%	17015.08%	12.23%	-6.02%
RIVN	56 Neutral	$18.24B	―	-53.82%	―	0.58%	35.39%
XPEV	55 Neutral	$19.93B	―	-15.52%	―	50.45%	49.81%
LOT	53 Neutral	$1.44B	―	90.29%	―	154.07%	-255.47%
LCID	51 Neutral	$7.81B	―	-50.06%	―	40.67%	3.40%
NIO	48 Neutral	$8.12B	―	-142.49%	―	16.99%	12.99%
VFS	44 Neutral	$8.19B	―	36.15%	―	139.64%	-159.15%

* Financial Sector Average

Performance Comparison

LOT

Lotus Technology

2.13

-8.77

-80.46%

NIO

Nio

3.82

-1.08

-22.04%

XPEV

XPeng, Inc. ADR

20.00

11.56

136.97%

LCID

Lucid Group

2.56

-0.18

-6.57%

VFS

VinFast Auto

3.50

-1.42

-28.86%

RIVN

Rivian Automotive

15.63

5.21

50.00%

Lotus Technology Earnings Call Summary

Earnings Call Date:Apr 22, 2025

(Q3-2024)

% Change Since: 66.41%|

Next Earnings Date:May 28, 2025

Earnings Call Sentiment Neutral

Lotus Technology showed strong revenue growth and vehicle delivery figures, driven by its expanding ADAS business and strategic market entries. However, the company faced challenges with declining gross profit margins and increased losses, exacerbated by inventory issues, particularly in Europe.

Q3-2024 Updates

Positive Updates

Significant Revenue Growth

Lotus Technology achieved total revenue of $653 million in the first nine months of 2024, marking a 105% year-over-year increase.

Record Vehicle Deliveries

In the third quarter, 2,744 units were delivered, representing a 54% year-over-year increase.

ADAS Business Expansion

Revenue from the intelligent driving business reached $11 million in the first nine months, with a year-over-year growth of 450%.

Service Revenue Increase

Service revenue was $29 million, a 129% year-over-year increase, with a gross margin of 55% compared to 28% last year.

New Market Entries and Infrastructure Expansion

Lotus expanded its charging infrastructure in Europe with more than 300,000 stations and continues to invest in China with over 18,000 stations.

Operating Expense Reduction

Operating loss decreased by 22% quarter-over-quarter, showcasing effective cost management strategies.

Negative Updates

Decline in Gross Profit Margin

Gross profit margin was 3% in the third quarter, down from 15% in the same period last year, mainly due to inventory management challenges.

Increased Operating and Net Loss

Operating loss was $598 million, an 18% year-over-year increase, while net loss was $667 million, a 19% increase compared to last year.

Challenges in European Stock Levels

The company is facing challenges with unhealthy stock levels in Europe which may impact new model launches.

Company Guidance

During the Lotus Technology Inc. Q3 2024 earnings call, the company reported delivering over 7,600 vehicles in the first nine months, generating $653 million in total revenue. In Q3 alone, 2,700 units were delivered, marking a 54% year-over-year increase, while sales revenue reached $255 million, up 36% year-over-year. Notably, the company's intelligent driving business, with ADAS technology, contributed $11 million, reflecting a 450% year-over-year growth. However, the gross profit margin decreased to 9% for the first nine months and slid further to 3% in Q3, largely due to inventory management challenges amidst trade protectionism and inflation. The company aims for a 20% gross profit margin by 2026, forecasting sales of over 30,000 units, supported by new model launches and strategic market expansions.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.