English sports car manufacturer Lotus is on its own again

Lotus Technology Inc. has announced that Geely, the majority owner of its vehicle manufacturing business Lotus UK, exercised its put option earlier this week to sell its 51% stake in the latter company back to the former company.

In other words, Geely steps out, and Lotus Tech has to buy back 51% of Lotus UK’s share, putting all the respective businesses under one umbrella.

Over 70 years of history

The Lotus brand was founded in the UK over 70 years ago by Anthony Colin Bruce Chapman, hence the ACBC acronym in the Lotus logo. Over the decades, it has made a name for itself in delivering lightweight sports cars and, more recently, luxurious hypercars.

Unlike many competitors, Lotus was a relatively early adopter of EV technologies and has previously vowed to become an all-electric brand.

That promise was part of a strategy bolstered by Geely Hong Kong Ltd. (Geely), which acquired 51% of Lotus Advanced Technologies (Lotus UK or Lotus Cars) in 2017. As a result, Geely gained majority control of Lotus’ manufacturing division in the UK and its consultancy division, Lotus Engineering.

Separate entities coming together again

Since then, Lotus Technology Inc., the R&D and design business of Lotus Group, has operated as a separate entity. In late January 2023, Geely and Lotus Tech signed a Put Option on Geely’s 51% stake in Lotus UK’s equity interests.

As of April 14th, 2025, Geely has decided to exercise said Put Option, requiring Lotus Tech to purchase that majority stake back, which it intends to do this year.

Lotus Technology Inc. issued a press release outlining the details of Geely’s Put Option announcement. The company explained its intention to purchase 51% of Lotus Cars and reorganize R&D, engineering, and manufacturing under one brand.

The equity interest purchase of Lotus Cars will be a non-cash transaction based on a pre-agreed pricing method between Lotus Tech and Geely, i.e., the 2023 Put Option.

Lotus Tech CEO Qingfeng Feng addressed the news: “This acquisition marks a critical milestone in our strategic journey to fully integrate all businesses under the Lotus brand, which will strengthen brand equity and enhance our operational flexibility and internal synergies. We are confident that the transaction will create substantial long-term value for our shareholders.”

The reintegration of all Lotus businesses is expected to be completed this year. According to a company representative, the company is now in a blackout period, so they could not comment any further until Lotus releases its Q4/EOY 2024 earnings on April 22nd.

That report will offer insight into the automaker’s current financial situation and future plans without Geely.

A worrying move?

There is a possibility that Feng may be painting a rosier picture than what is actually going on. Regaining control over Lotus UK and Lotus Engineering will consolidate financials and streamline business operations. Still, an exercised Put Option is hardly ever encouraging news.

Geely remains a successful global auto conglomerate and a key player behind many leading EV technologies across its different brands, especially in China. The fact that such a forerunner in engineering and EV development has left Lotus is concerning when imagining the future of the veteran UK brand, at least in terms of BEV development.

Lotus will thus probably continue without Geely; the percentage that Geely-controlled entities will have in the newly combined Lotus company hasn’t been disclosed.

Lotus still has support from consumer-focused investment firm L Catterton following a SPAC merger completed last year. Ups and downs have characterized the company’s history, and it has flirted with bankruptcy several times.

Lotus Technology has been affected by falling demand for EVs among wealthier car buyers. With Lotus UK, it has been severely buffeted by Trump’s increased trade tariffs, with the US being a key market.

Last week, Lotus UK announced that it would cut up to 270 jobs at its Hethel plant in light of the American decision to impose a blanket 25% tariff increase on all imported cars. The cuts were also attributed to a “shifting consumer demand for sports cars,” referring to lower sales of the gasoline-engined Emira.

Like many competitors in this niche market, Lotus will address decreasing EV sales in 2026 by introducing gasoline-engined range extender versions (EREVs) of its electric models.