There’s never a simple story when it comes to Lotus. Whether it’s the minutiae of a special edition spec or the availability of certain models, things are never quite as they seem. Or as we’d all like them to be. The same is true for its financial results: compared to the first quarter for 2023, revenues and profits are up massively, the adjusted EBITDA has increased - yet in the same period both operating and net losses have climbed as well. Economists of PH, now’s your time to shine.
It’s good to see Lotus making and selling a great many more cars, that’s for sure. The 2023 results made for pretty grim reading, with just 28 (!) Emiras delivered in the first quarter of last year and 236 Eletres. Now, with the SUV in more markets, the Emeya saloon already on sale in China and the Emira finally available in the States, the numbers look healthier - even if it has failed by some margin to surpass the 3,749 units it reported selling in the fourth quarter.
In its unaudited financial results (which you can peruse at your leisure here) Lotus says 1,047 ‘lifestyle vehicles’ - so Emeya and Eletre - found homes in January, February and March, alongside 1,147 Emiras. That’s 2,194 in total, or a 731 per cent improvement on Q1 2023. "Through our unwavering commitment to innovation and excellence, we are making steady progress on delivering Lotus Tech’s Vision80 plan," reckons Lotus Tech CEO, Qingfeng Feng.
It's true that revenues and profit have grown significantly. The former was just $19m for the first three months in 2023, and is now $173m; the latter climbed from $200,000 to $30m. But making more cars, especially ones where costs will still need to be recouped, requires more money, and so the cost of revenues has climbed. What was $19m for Q1 2023 was $143m 12 months later. Revenue (at 811 per cent more) soared higher than the cost of revenues did (653 per cent), but selling seven times as many cars isn’t always a straightforward home run.
Lotus’s operating loss was $233m for the first quarter of 2024, and its net loss was $258m. Or more than a quarter of a billion dollars. It might be said they represent fairly modest (by the standards of these results) gains over 2023; indeed the net loss for the last financial year was $750m, so it’s hardly like the company is unfamiliar with this territory. But there is always a time limit for this kind of performance, even when it’s forecasted. Adjusted Earnings Before Interest, Depreciation and Amortisation were $204m, against $154m for Q1 2023.
Not that Lotus is looking back if it can avoid it, of course, because there’s plenty in the pipeline. A European launch for the Emeya is imminent, with deliveries soon after, the Chapman Bespoke division has launched with commissions to come and, if the UK configurator is anything to go by, the 2.0-litre Emira is now available to order again. Qingfeng Feng added: “Our global strategy continues to drive growth and success as we expand our presence and sales across key luxury markets worldwide. We are encouraged by the positive feedback received in these new markets and look forward to rolling out new models to new geographies throughout the year."
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