Lotus Technology Inc. has recently announced some major changes in its business structure, with Geely selling its 51% stake in Lotus UK back to the former company. This move will bring all respective businesses back under one umbrella, marking a significant shift in the company’s ownership.
Lotus, a renowned brand in the UK known for its sporty and luxurious hypercars, has been at the forefront of adopting EV technologies. With a commitment to becoming an all-electric brand, Lotus has been focusing on developing electric vehicles to meet the growing demand for sustainable transportation.
Geely, a majority owner of Lotus UK since 2017, has decided to exercise its put option, requiring Lotus Technology Inc. to buy back the 51% stake in Lotus UK. This move will consolidate the R&D, engineering, and manufacturing divisions of Lotus under one brand, streamlining operations and enhancing operational flexibility.
Lotus Technology Inc., trading under the symbol $LOT, has outlined the details of the equity interest purchase of Lotus Cars in a non-cash transaction based on a pre-agreed pricing method. The company’s CEO, Qingfeng Feng, expressed confidence in the transaction, emphasizing the strategic importance of integrating all businesses under the Lotus brand.
While the acquisition represents a critical milestone for Lotus, the departure of Geely raises concerns about the future of the company’s BEV development. Geely, a global auto conglomerate with expertise in engineering and EV technologies, has been a key player in supporting Lotus in its EV initiatives.
Despite the challenges posed by Geely’s exit, Lotus remains optimistic about its future. With support from consumer-focused investment firm L Catterton and a recent SPAC merger, Lotus is poised to continue its operations independently. The reintegration of all Lotus businesses is expected to be completed this year, with more details to be revealed in the upcoming Q1 2025 earnings report.
In conclusion, Lotus is embarking on a new chapter in its journey, with a renewed focus on electric vehicles and a commitment to delivering innovative and sustainable transportation solutions. The company’s strategic realignment and reorganization signal a new beginning for Lotus, setting the stage for future growth and success in the EV market.
