Lotus Tech, EV Maker, Shows Modest Gain in Nasdaq Debut
On February 23, luxury electric car maker Lotus Technology saw a 2% increase in its Nasdaq debut, rebounding from earlier losses after completing its merger with a blank-check acquisition company backed by private equity firm L Catterton.
Lotus Technology’s American Depositary Shares, trading under the new ticker “LOT,” closed at $13.80, recovering from a low of $10.12 earlier in the day. Approximately 190,000 shares were traded. The special purpose acquisition company (SPAC), L Catterton Asia Acquisition Corp (LCAA), closed at $13.51 on the previous day. The deal valued Lotus Technology at around $7 billion.
As the EV market faces increased scrutiny in capital markets, Lotus Technology’s listing comes amid a challenging environment for electric vehicle manufacturers. Companies like Rivian Automotive and Lucid Group experienced declines in their stock prices following recent earnings reports that highlighted the impact of slowing EV demand on their expansion plans.
Headquartered in Wuhan, China, Lotus Technology is engaged in a partnership with Chinese automaker Geely to design, develop, and sell luxury lifestyle electric vehicles (EVs) under the iconic British brand Lotus, established in 1948. The company’s IPO provides an opportunity to access capital markets and accelerate its global expansion, according to Qingfeng Feng, the CEO of Lotus Tech.
Similar to other SPAC mergers, over 90% of LCAA shareholders chose to redeem their shares, leaving the trust’s account with approximately $11 million. This can contribute to stock volatility, given the limited number of publicly available shares.
Lotus Technology has already introduced two EV models, including its first fully electric sports utility vehicle, Eletre. The company commenced deliveries in China in 2023, expanding to the UK and the European Union. Lotus Technology anticipates entering the U.S. market with deliveries later in the current year, highlighting its global growth ambitions.
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