Gavin Smith's questions to Lotus Technology (LOT) leadership • Q3 2024
Question
Gavin Smith from Evest Collective asked if the trend of declining operating expenses would continue into Q4 and 2025, seeking clarity on the key drivers. He also requested guidance on the expected full-year loss for 2024 and the outlook for 2025.
Answer
CEO Feng Qingfeng attributed the OpEx reduction to a 'Lean' strategy, focusing on smaller, efficient retail shops, targeted R&D on high-margin tech like ADAS, and leveraging Geely's resources for EV architecture to share costs. CFO Alexious Lee addressed the outlook, reiterating the 'Win2026' strategy targets of 30,000 units and 20% gross margin. He stated that 2025 guidance would be provided in early 2025 but suggested 2025 performance would be a midpoint step towards the 2026 goals.