Lotus Technology’s Nasdaq debut sees a 2% share increase post-merger with L Catterton-backed SPAC, marking a $7 billion valuation amidst a challenging EV market landscape.
Lotus Technology, a luxury electric car manufacturer, experienced a 2% share increase during its Nasdaq debut on Friday. After finalizing its merger with a blank-check acquisition company backed by private equity firm L Catterton, it rebounded from an earlier decline. The company’s American Depositary Shares, traded under the new ticker symbol “LOT,” closed at $13.80, recovering from a low of $10.12 earlier in the day, with a trading volume of approximately 190,000 shares. The special purpose acquisition company (SPAC) that merged with Lotus Technology, L Catterton Asia Acquisition Corp (LCAA), closed at $13.51 on Thursday.
Lotus Technology was valued at around $7 billion in the deal with LCAA, which L Catterton supports. It operates as a subsidiary of British sports car maker Lotus Group, jointly owned by Chinese automaker Geely and Malaysia’s Etika Automotive. The Nasdaq listing coincided with increased scrutiny for electric vehicle (EV) makers in the capital markets. Rivian Automotive and Lucid Group, two rival EV companies, saw declines on Thursday following their earnings reports, highlighting the impact of slowing EV demand on their growth strategies.
Based in Wuhan, China, Lotus Technology manufactures cars in collaboration with Geely, aiming to design, develop, and sell luxury lifestyle EVs under the Lotus brand established in Britain in 1948. Qingfeng Feng, the company’s CEO, feels that accessing the capital market through the IPO catalyses Lotus’s global expansion.
Following the SPAC merger, more than 90% of LCAA shareholders chose to redeem their shares, leaving the trust’s account with approximately $11 million. This limited availability of publicly traded shares can lead to increased stock volatility. Lotus Technology has introduced two EV models to the market, including its first fully electric sports utility vehicle, Eletre, which began delivery in China in 2023 and later expanded to the UK and the European Union. The company plans to commence deliveries in the U.S. later this year.
