Lotus Technology, the luxury electric vehicle (EV) company majority-owned by Geely Holding, saw a modest increase in its Nasdaq debut on Friday following its merger with a special purpose acquisition company (SPAC).
Trading under the ticker symbol “LOT,” Lotus Technology closed the day up 2.15 percent at $13.80, giving it a market capitalization of $9.3 billion. This places it higher than Xpeng’s $8.1 billion but slightly below Nio’s $11.2 billion. Li Auto leads among US-listed Chinese EV makers with a market capitalization of $36.9 billion.
See also: Lotus Emeya Hyper-GT Successfully Concludes Global Testing Program in Arctic Conditions
Nio, on the other hand, experienced a 7.69 percent drop to $5.40 at the close of Friday’s trading after JPMorgan downgraded its rating on the EV maker to Underweight from Neutral and reduced its price target to $5 from $8.50.
Lotus Technology’s listing on the Nasdaq was made possible through a merger with L Catterton Asia Acquisition Corp (LCAA), which was finalized on February 22.
Headquartered in Wuhan, Hubei province, Lotus Technology’s Nasdaq listing marks the largest listing of a China-concept stock so far in 2024.
See also: Lotus Confirms Apple Car Key Compatibility for New Emeya Electric Vehicles
“We are proud to carry Lotus’s heritage into the future, and to open a new chapter in the Lotus story with our public listing today,” said Lotus Technology CEO Feng Qingfeng, according to a statement.
Lotus Group, founded in 1948, has a rich history as a luxury sports car company. Over the years, ownership of Lotus has changed hands several times, with General Motors acquiring a majority stake in the 1980s before selling it to Proton Holdings of Malaysia in 1996. Geely acquired a significant stake in Proton and Lotus in 2017.
Lotus Technology’s listing is expected to support the development of its next-generation automobility technologies and the expansion of its global distribution network from around 200 to over 300 stores globally by 2025, the company stated.
See also: Lotus to Unveil All-Electric Sports Car in 2027, Codenamed Type 135
By 2027, Lotus Technology aims to become the first traditional luxury car brand with a 100 percent electric portfolio. The company has already launched two EVs, including the Eletre hyper-SUV and Emeya hyper-GT, with plans to introduce two more luxury EVs in the next two years.
