LOT.US (LOT.US), which is on the path of transformation, used a financial “report card” that can almost be called all-round growth to show the world the latest results in its own “evolution” process.

On May 29, Lotus released its unaudited financial report for the first quarter of 2024. According to the announcement, in the first quarter of 2024, Lotus achieved revenue of 173 million US dollars, a sharp increase of 811% over the previous year; gross margin reached 18%, an increase of 3 pcts over the full year of 2023.

According to the Zhitong Finance App, Gao Zuo Kaige's financial data indicates that Lotus, which is advancing into the “deep-water zone” of transformation, has achieved fruitful phased results. In fact, the current strong product cycle of Lotus has begun. The company's first pure electric lifestyle car, Eletre, expanded production and sales in the second half of 2023, followed by delivery of its first pure electric supercar, the Emeya, in the Chinese market in March of this year. Driven by an increasingly rich product matrix, Lotus delivered a total of 2,194 vehicles in the first quarter, a sharp increase of 731% over the same period last year.

The first quarter had a good start, and this is probably just an “appetizer” before Lotus ushered in all-round value upgrades. Currently, Lotus is anchoring globalization, increasing horsepower to develop overseas high-potential markets, and continue to promote global delivery of products.

The quarterly report verifies the results of self-“ evolution”

For car companies, car sales have always been the “litmus test” for a company's market competitiveness.

In 2023, with the “assist” of the luxury all-electric supercar SUV Eletre, Lotus set an annual delivery record in the 76-year history of the company's brand. After entering 2024, Lotus's sales performance is still steady and steady.

Behind strong market performance, the key to supporting Lotus to “evolve” itself is its increasingly rich product matrix. Up to now, Lotus's product portfolio includes 4 models, including the final fuel supercar Emira and the world's fastest mass-produced pure electric supercar Evija, as well as Eletre and Emeya, which are more practical than previous products. The latter two new models, which are positioned as household vehicles, have brought considerable growth to the company. Financial reports show that of the 2,194 vehicles that Lotus delivered in the first quarter, sales of household vehicles reached 1,047 units, an increase of 344% over the previous year.

The reason behind this impressive achievement is not only due to Lotus's global genes, but also to its continued firm implementation of the global strategy after establishing the “Vision 80” ten-year brand revival plan. Up to now, Lotus has entered major markets around the world. The sales network covers China, Europe, America, the Middle East and the Asia-Pacific region, and the number of global stores has reached 215.

As reflected in financial data, Lotus, which is fully engaged on both sides of the product and channel, has also achieved value progress as scheduled. As mentioned at the beginning of the article, the size of Lotus increased more than 8 times year-on-year in the first quarter to 173 million US dollars. At the same time as the scale was expanded, the company's profitability simultaneously broke through upward, and gross margin reached 18% during the period. It is worth mentioning that Tesla's gross margin during the same period, which has always been praised by investors for its strong profitability, was only 17.4%. Comparing the two, it is easy to see that Lotus, which is still undergoing transformation, has huge profit potential.

High-end positioning+globalization help break out of the “internal volume” circle

Since its birth in the UK in 1948, Lotus has gone through more than 70 years of spring and autumn. As a sports car brand once famous as Ferrari and Porsche, Lotus has witnessed the changes of the last fuel-powered car era.

Time has passed, and with the iteration of technology and changes in consumer preferences, electric and smart have become new trends in today's automotive market. Currently, the word “volume” in the global automobile industry is taking the lead, market demand is changing rapidly, and the entire industry chain is being “reshuffled” at an accelerated pace. Being in it, Chinese and foreign car companies are racing against the clock to find a way to break through.

Looking back on Lotus, looking at the company's recent performance trends and business trends, Lotus may have found the “key” to crossing the industry's fluctuation cycle and achieving high-quality development.

The Zhitong Finance App believes that the first key point for Lotus to break out of the “internal circle” of the industry is that it adheres to its high-end positioning. Unlike the rising stars currently flooded in the electric luxury car market, Lotus was born with the F1 championship gene. Looking through history, Lotus has won a total of 7 F1 manufacturers' championships of the year, 6 F1 drivers' championships, and 81 F1 race championships.

Adhering to the brand concept of “FOR THE DRIVERS” (everything for the driver), every Lotus car can still get off the racetrack at any time today. According to Lotus, million-level pure electric luxury should return to the essence of luxury. By providing The Lotus Drive's ultimate driving control system and Driver to Driver full-process customer experience, “driving” is deeply integrated into the brand concept to stimulate users' deep sense of identity.

The rich brand history and racetrack genes imprinted in its bones make Lotus particularly dazzling among electric luxury brands, and this natural sense of scarcity and high value is probably what motivates Lotus to stick to its high-end positioning.

Anchoring the high-end route, in April of this year, Lotus also launched the first lifestyle car collection (Lotus Emeya Blossoms Premium Limited Edition) under the Lotus Haute Couture brand Lotus Chapman Bespoke. Meanwhile, at the Beijing International Auto Show, Lotus also showcased a variety of limited-edition models, bringing the concept of “one car for one person” to the extreme.

On the basis of adhering to high-end positioning, Lotus is also determined to respond to the changing industry environment with an international R&D vision and channel layout.

Beginning in 2023, Lotus has officially launched deliveries in the three major markets of China, mainland Europe, and the United Kingdom. In the first quarter of this year, Lotus received orders from Eletre in more than 10 new markets, including the Middle East, Asia and America; at the same time, Lotus also received a large number of sports car orders in the US market. In addition, the company also plans to expand sales of Emeya flowers to new markets starting in the third quarter of this year.

As the number of stores surpassed 300, it is foreseeable that Lotus will continue to expand its competitive advantage with a richer product matrix and a more perfect global layout. From this perspective, the growth in the first quarter report can probably only be considered a “preview” of Lotus's all-round value advancement. The company's growth momentum is still sufficient, and the company's transformation results are expected to accelerate in the next few quarters.