Electric carmaker Lotus Technology Inc, owned by China's Geely, has slashed its annual delivery target by more than half because of the tariffs.
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Electric carmaker Lotus Technology Inc., majority-owned by China's Geely, has slashed its annual delivery target by more than half amid tariffs on Chinese-made electric vehicles and weak demand.
The company, which listed in February after being spun off as the EV arm of the British sports car maker, said on Wednesday it now expects to deliver 12,000 vehicles this year, down from a previous target of 26,000.
Shares in Lotus Technology fell 4.3 percent in early trade in New York, having lost nearly half of their value since listing.
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The lower target comes after the U.S. and the European Union planned to impose tariffs on EVs imported from China, where Lotus Technology is based and makes some models. The EU, which has accused China of unfairly subsidizing carmakers, has raised the prospect of imposing tariffs as manufacturers such as BYD Co. have begun to enter Europe more aggressively with cheaper EVs.
The outlook cut is a blow to investors who backed the company when it listed in February. At the time, Lotus said its range of luxury EV models and an alliance with luxury goods giant LVMH would help it avoid the same struggles as rivals.
Zhejiang Geely Holding Group, the automotive empire of billionaire Li Shufu, rescued Lotus in 2017 after the carmaker suffered as consumers turned to SUVs. The company is building electric models priced between $80,000 and $150,000, including more SUVs.
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The British sports car division is separate from the listed entity and is wholly owned by Geely.
Geely has faced similar problems with other brands it supports amid a broader slowdown in EV demand. Polestar has lost about 90 percent of its value since it was spun off from Volvo Car AB two years ago.
Geely also has stakes in Mercedes-Benz Group AG and Aston Martin Lagonda Global Holdings PLC.
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First Publication Date: 01 Sep 2024, 08:17 AM IST