ECARX Invests $23 Million in Lotus Technology

Key Takeaways

• ECARX has announced a $23 million investment in Lotus Technology through a share subscription agreement
• The investment aims to strengthen the partnership between the two companies and advance a more integrated global partnership
• ECARX has delivered strong recent results, achieving operating profitability for the first time in the third quarter of 2025
• Lotus Technology has encountered challenges, including a net loss in the third quarter of 2025, but the investment may provide access to advanced technologies
• The partnership could unlock deeper collaboration in technology development, market expansion, and supply chain integration

Introduction to the Investment
On December 29, ECARX announced that it had entered into a share subscription agreement with Lotus Technology on December 23, 2025. Under the deal, ECARX will subscribe to 16,788,321 newly issued ordinary shares of Lotus Technology at a price of $1.37 per share, representing a total investment of $23 million. This investment is intended to broaden the scope of cooperation between the two companies, strengthening their existing ties and advancing a more integrated global partnership with stronger strategic alignment.

Background on the Companies
Although both companies are part of the broader Geely ecosystem, their recent business trajectories and market performances have followed distinct paths. ECARX, a global mobility technology company, has delivered strong recent results. In the third quarter of 2025, it achieved operating profitability on a comprehensive basis for the first time, posting total revenue of $219.9 million, up 11% year on year. Gross profit reached $47.6 million, marking a sharp 39% increase. By the end of September 2025, nearly 10 million vehicles worldwide were equipped with ECARX-developed technologies. On the other hand, Lotus Technology, positioned as a global luxury electric sports car brand, has encountered a different mix of challenges and opportunities. Its third-quarter 2025 results showed a net loss of $0.10 per share, an improvement from a loss of $0.30 a year earlier. However, revenue declined to $137 million from $255 million in the same period last year.

Deeper Structural Shift in the Automotive Industry
Beyond a financial transaction, ECARX’s investment in Lotus reflects the deeper structural shift underway in the automotive industry as competition increasingly centers on intelligence, software, and digital ecosystems. ECARX’s global expansion strategy has begun to yield tangible results. As of the third quarter of 2025, the company had secured more than $2.5 billion in global order backlog, with overseas contracts spanning multiple mainstream automakers in Europe. For Lotus Technology, the capital injection may translate into enhanced access to advanced technologies in areas such as intelligent cockpits and smart driving systems.

Expected Outcomes of the Partnership
As industry competition continues to shift from electrification toward intelligence, the partnership could unlock deeper collaboration between the two companies in technology development, market expansion, and supply chain integration. ECARX co-founder, chairman, and CEO Ziyu Shen said the investment represents a natural and important step in the long-term evolution of the partnership. He noted that Lotus is a globally recognized automotive brand with strong international growth potential, adding that the combination of ECARX’s Pikes computing platform and the industry-leading Cloudpeak cross-domain software platform could help Lotus build a future-ready technology foundation for next-generation intelligent mobility worldwide.

Reaction from Lotus Technology
Lotus Technology CEO Feng Qingfeng said the investment further strengthens the long-standing partnership between the two companies. He described ECARX as a key collaborator in Lotus’ efforts to redefine the intelligent cockpit, adding that deeper and more globalized cooperation would accelerate innovation around next-generation cockpit ecosystems and deliver more advanced AI-driven user experiences. He also said the deal underscores investor confidence in Lotus’ ability to create long-term value for shareholders. The partnership between ECARX and Lotus Technology is expected to have a positive impact on both companies, enabling them to leverage each other’s strengths and expertise to drive growth and innovation in the automotive industry.

Conclusion
In conclusion, the investment by ECARX in Lotus Technology represents a significant development in the partnership between the two companies. The deal is expected to strengthen their existing ties and advance a more integrated global partnership with stronger strategic alignment. With ECARX’s strong recent results and Lotus Technology’s potential for growth, the partnership could unlock deeper collaboration in technology development, market expansion, and supply chain integration, driving innovation and growth in the automotive industry. As the industry continues to shift towards intelligence, software, and digital ecosystems, the partnership between ECARX and Lotus Technology is well-positioned to capitalize on these trends and create long-term value for shareholders.