(Reuters) – Lotus Technology reported a sequential surge in quarterly revenue on Monday, less than two months after going public, due to strong demand for its luxury electric cars.
The revenue jump is despite demand for electric cars growing at a slower-than-expected pace as high interest rates discourage buyers from making big-ticket purchases.
The company was valued at about $7 billion in a deal with special purpose acquisition company, L Catterton Asia Acquisition Corp, when it went public in February.
Lotus Tech is part of British sports car maker Lotus Group, which is owned by Chinese automaker Geely and Malaysia’s Etika Automotive.
The company is headquartered in the Chinese city of Wuhan and produces cars through a partnership with Geely.
Its revenue jumped to $361 million in the fourth quarter from $188 million in the July-September period.
Deliveries for the quarter ended Dec. 31, 2023 jumped to 3,749 units, up 110% from the prior three-month period. For 2024, Lotus Tech expects deliveries to grow about threefold to 26,000 units.
Lotus Tech began deliveries of the Emeya electric grand touring car last month in China and expects to start handing over the vehicle in Europe in the third quarter. Its Eletre electric SUV is also set to be launched in the U.S. this year.
The company’s net loss widened to $224 million in the December quarter from a loss of $174 million in the third quarter.
In the fourth quarter, its gross margin rose to 19% from 15% a quarter earlier. The company expects gross margin of 17%-19% in 2024.
Lotus Tech’s cash balance fell to $418.9 million at the end of 2023 from $736.6 million a year earlier.
