Lotus Technology (NASDAQ:LOT) reported its unaudited full-year 2025 financial results on April 10, 2026, revealing a period of significant operational transition.
Despite a 44% decline in total revenue to $519 million, the luxury automaker significantly narrowed its losses and successfully launched its first plug-in hybrid vehicle (PHEV) to diversify its powertrain offerings amid shifting global trade policies.
The company delivered 6,520 vehicles in 2025, a decrease from the prior year attributed to aggressive inventory destocking and substantial tariff headwinds in key Western markets.
However, the company’s bottom line showed marked improvement; operating losses narrowed 46% year-over-year to $423 million, while adjusted EBITDA loss improved by 63% to $356 million.
A bright spot in the report was service revenue, which surged 69% to $56 million, driven by the expansion of the Lotus global after-sales and charging network.
That strategic pivot was headlined by the debut of the Lotus For Me (branded as the Eletre X in Europe), a "hyper-SUV" featuring the new X-Hybrid architecture.
The vehicle boasts a flagship output of 952 PS and a combined range exceeding 1,400 km.
It launched in China in late March 2026, with European deliveries slated for the fourth quarter.
In a significant regulatory win, Lotus became the second automaker globally to achieve UN R171.01 certification for its advanced driver-assistance systems (ADAS).
This international benchmark facilitates the global rollout of its autonomous driving features and underscores the company's R&D lead in the intelligent mobility sector.
To support its technical roadmap, Lotus secured a $23 million strategic equity investment from ECARX Holdings.
The partnership focuses on integrating the ECARX Pikes computing platform and Cloudpeak software stack into future Lotus models, aiming to deliver a seamless, AI-driven cockpit experience.
Financially, the company maintained a gross margin of 9%.
Management expects margins to strengthen in late 2026 as the high-margin Eletre X begins global distribution and the company completes its inventory realignment.