Gavin Smith's questions to Lotus Technology Inc (LOT) leadership • Q3 2024
Question
Gavin Smith from Evest Collective asked if the four-quarter trend of declining operating expenses would continue into Q4 and 2025, and what the primary drivers for this reduction are. He also followed up by asking for the expected full-year total loss for 2024 and the general outlook for 2025.
Answer
CEO Feng Qingfeng confirmed the cost reduction strategy, citing streamlined retail operations, focused R&D on high-margin tech like ADAS and intelligent chassis, and leveraging Geely's EV architecture to manage costs. CFO Alexious Lee addressed the outlook, reiterating the company's Win2026 strategy of 30,000 units and 20% gross margin. He indicated that 2025 would be a transitional year and that formal 2025 guidance would be provided before the Chinese New Year.