To The Moon

Lotus Technology Inc. (NASDAQ: LOT) | Investment Perspective | September 2026 

US$1.11  8 Sep 2026 close 

US$268m  1H26 revenue, +23% YoY 

US$1.80  Zacks 12-month target 

 LOT has the profile of a company that the market has largely written off. At US$1.11 on 8 September 2026, the share price reflects concerns over ongoing losses, leverage and a difficult luxury-vehicle market. Those concerns are valid, but the latest operating numbers are improving faster than the valuation suggests. 

In the first half of 2026, Lotus Technology delivered 3,904 vehicles, up 39% year on year, while revenue rose 23% to US$268 million. Gross profit increased 47% to US$26 million and gross margin improved to 10% from 8%. Reported operating loss narrowed 63% to US$97 million. Even excluding a one-off licence-fee refund, operating loss was US$195 million, still 26% lower year on year. The business is not profitable yet, but the cost base and operating leverage are moving in the right direction. 

The product mix is becoming more commercially relevant as well. The Eletre X, Lotus' first PHEV, has widened the brand beyond a pure-BEV proposition. Lifestyle SUVs and sedans represented 77% of first-half deliveries, while China deliveries grew 60%. Mainland European deliveries are expected to begin in the fourth quarter of 2026. A successful rollout would give Lotus a larger addressable market and better utilisation of its existing platform. 

The August acquisition of Lotus UK adds another rerating angle. Bringing the sports-car operations, engineering capability and technology activities under One Lotus should simplify brand management, product development and cost control. Together with the US$128 million of shareholder funding secured in the first half, Lotus now has a more coherent structure from which to execute its Focus 2030 plan. 

The valuation gap is becoming difficult to ignore. Zacks Small-Cap Research forecasts revenue of US$542 million for 2026 and US$873 million for 2027, while maintaining a 12-month target of US$1.80 per share. Against the 8 September close, that represents about 62% upside. Zacks relies heavily on enterprise-value-to-revenue because Lotus still carries substantial debt, which is more appropriate than applying a conventional P/E multiple to a loss-making company. 

The investment case is therefore not that Lotus should already be valued like a mature luxury automaker. It is that the market may still be pricing LOT as if the 2025-2026 trough will persist. First-half data now points to recovering deliveries, higher margins, narrowing losses and a broader powertrain strategy. If Lotus can sustain the Eletre X momentum, execute the European rollout and continue tightening costs, the current share price leaves meaningful room for a rerating. At US$1.11, investors are paying for a turnaround that remains unproven, but the operating evidence is starting to move ahead of the market's expectations. 

Sources: Lotus Technology unaudited 1H2026 results (27 Aug 2026); Zacks Small-Cap Research (28 Aug 2026); market price data as at 8 Sep 2026. Zacks SCR discloses issuer-related compensation for research coverage. For general information only; not investment advice. 

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