George Tang's questions to Lotus Technology (LOT) leadership • Q4 2024
Question
George Tang from Alison Capital asked about the financial impact of the put option to acquire Lotus U.K., particularly on the balance sheet and debt ratio. He also inquired about Lotus's U.S. market strategy and sales targets in light of current tariffs.
Answer
CFO Daxue Wang clarified that the acquisition of Lotus U.K. is structured as a non-cash transaction and will not add a cash burden to the company. CEO Feng Qingfeng explained that while U.S. tariffs have halted the import of China-made lifestyle vehicles, the plans for U.K.-made sports cars are less affected. He noted a potential sales reduction of 200-300 units due to tariffs and mentioned that establishing manufacturing in the U.S. is being explored as a potential long-term solution.