With the slowdown in sales growth and the continuous financial losses of some car companies, the enthusiasm of the capital market for electric vehicles has begun to retreat. A number of new EV makers are struggling with the funds they need to scale up; The IPO plans of some traditional automakers for electric vehicle brands have been put on hold.
However, Lotus is moving forward with plans to list on the Nasdaq in the United States by the end of March. "Lotus' high-end positioning in the SUV and sedan range means that it is better positioned to survive the current cautious approach to electric vehicles. Mike Johnstone, chief commercial officer at Lotus, said.
According to Automotive News, although the current capital market has begun to cool down on the new energy vehicle sector, Lotus is advancing its plan to list on the NASDAQ in the United States by the end of March. According to Lotus filings in October, the company will be valued at $5.4 billion for the company.
Mike Johnstone, Lotus' chief commercial officer, said that as Geely Automobile's holding company, Lotus plans to move forward with a merger with special purpose acquisition company LCATTERASIAACQUISITION (LCAA) in the first quarter. Lotus was initially scheduled to go public at the end of 2023. "There is no specific reason for the postponement of the listing, and we feel that the situation is good. Johnstone said.
The electric vehicle market is cooling.
In recent years, riding on the east wind of new energy vehicles, new car-making forces have sprung up around the world, and market competition has further intensified. Now, with the slowdown in sales growth and the continuous financial losses of some car companies, the enthusiasm of the capital market for electric vehicles has begun to retreat.
Many of the new EV makers, including Rivian, Fisker, Arrival, and Lucid, are currently struggling to find the money they need to scale up. In the case of Fisker, the company had previously renegotiated the terms of the debt agreement to allow the acceptance of a strategic partner.
"Some of the new EV makers need to show how to be profitable and how to deal with strong competitors – bigger players and Chinese automakers." ”
In addition, plans to launch EV brands owned by traditional automakers have been put on hold. A few days ago, Renault said that it would cancel the IPO plan of its Ampere electric vehicle division, and investors cheered; Volkswagen has also postponed plans to seek outside investors for its battery subsidiary PowerCo.
Philippe Houchois, an analyst at Jefferies, said, "At present, the valuation of pure electric vehicles is declining, and the capital market has lost interest in the IPO of electric vehicle companies. ”
By comparison, GM shares have been nearly 50% since November as CEO Mary Barra slowed spending on electric vehicles and autonomous driving and launched a $10 billion buyback program.
Lotus regains its IPO plans.
"Lotus' high-end positioning in the SUV and sedan range means that it is better positioned to survive the current cautious approach to electric vehicles. "We delivered the number of cars we expected, and we had a pragmatic plan for growth and gross margins," Johnstone said.
In October last year, Lotus filed a document with the U.S. ** Exchange Commission showing that based on current sales of Eletre, Emeya and Emira, the company plans to reach 7. annually by 202560,000 units. Lotus did not disclose its 2023 sales figures, but the documents show that as of September 30, 2023, Eletre and Emira had delivered 4,800 units worldwide.
According to the plan, Lotus will launch a new mid-size SUV model this year to benchmark the Porsche Macan pure electric version, and the new car will be launched in 2026. Lotus expects annual sales of the 134, codenamed 134, to reach 80,000 to 90,000 units a year by 2027, accounting for the majority of the 150,000 production capacity at the Wuhan plant.
It is understood that Geely Automobile acquired Lotus in 2017 and invested 1.5 billion pounds (16US$300 million), hoping to capitalize on the electrification transition to turn this historically storied but financially fragile brand into a competitor to Porsche. Lotus said that when the emira is replaced by a new energy source in 2027, the brand will be fully electrified in 2028.
Johnstone**, given the future direction of the internal combustion engine, the current negative sentiment around specific companies for electric vehicles will not continue. "Driven by consumers and regulators, the rise in EV adoption will be the general trend. Johnstone said. (Compiled by Jiang Zhiwen of China Economic Net).
*: China Economic Net.