AutoBeta(AutoBeta.net)03/09 Report--

Lutes, a millionaire domestic supercar brand, has been listed for 11 trading days, and its share price has evaporated 45% from its peak.

Lutes completed its merger with special purpose M & A company L Catterton Asia Acquisition Corp on Feb. 23 and listed on Nasdaq under the symbol "LOT". The stock fluctuated sharply on the day of listing, closing at $13.80 on the first day, up 2.15%, with a total market capitalization of $9.294 billion.

Since then, Lutes' share price has continued to decline, falling 59.65% from Feb. 27 to March 6, rebounding sharply in the past two days, rising 17.97% on March 8, and narrowing its cumulative decline from a peak of 57.44% to 45.08%. The total market capitalization is now $5.159 billion, compared with a loss of $4.135 billion (about 29.7 billion yuan) from the highest market capitalization at the time of listing. In addition, the Tramway report found that Lutes' turnover was extremely low, with a cumulative turnover of only 10 million since it went public, of which 1.285 million on March 8, far lower than the mainstream car companies in the market.

Founded in 1948, Lutes, once on a par with top supercar brands such as Ferrari and Porsche, is one of the world's three largest sports cars. Later, Lutes was too small to make a profit on a large scale. It was successively acquired by Toyota, General Motors, Italian capitalists and Proton Group. After several changes of hands, it finally became Geely's eighth listed company in the capital market. The top seven are Geely, Polar, Volvo, Hanma Technology, Lifan Technology, Qianjiang Motorcycle and Yijiatong.

In June 2017, Geely signed an agreement with Malaysia's DRB-HICOM Group: Zhejiang Geely Automobile holding Group acquired 49.9% of Proton Motor, a subsidiary of DRB-HICOM Group, and 51% of luxury sports car brand Lotus, which is wholly owned.

Two years after Geely took control of Lutes, Lutes released its first pure electric supercar Evija, which sells for as much as 21.88 million yuan and is limited to 130 units worldwide. Three years later, in October 2022, Lutes launched the first pure electric SUV Lutes ELETRE, which sells for 728000 yuan to 1.028 million yuan and accelerates for 2.95 seconds. In January this year, EMEYA Fanhua, Lutes' first pure electric car, also officially went on sale, with a price of 66.8-1.18 million yuan. According to the plan, Lutes will launch two more pure electric models in the next two years.

It is worth mentioning that all the pure electric cars currently sold by Lutes are produced by Zhejiang Geely Automobile Manufacturing Co., Ltd., but it is extremely difficult to see Lutes models in the Chinese market, even in Beijing, Shanghai, Guangzhou and Shenzhen. According to the prospectus, Lutes sold 1566 vehicles worldwide from 2021 to 2022, with 4800 delivered in the first half of 2023.

In addition, as a super brand, Lutes has been losing money. According to the prospectus, from 2021 to the first half of 2023, the net losses of Lutes Technology were $111 million, $725 million and $353 million, respectively, with a cumulative loss of $1.188 billion, or about 8.542 billion yuan. the main reason for the loss is the small volume of sales and the high cost of research and development. the loss is difficult to improve.

This is also the reason why Lutes entered the capital market and obtained enough capital through external financing to promote the brand to realize its vision of becoming a market leader in luxury electric vehicles, especially at a time when the growth of the pure electric vehicle market is slowing. under the background of fierce market competition, Lutes needs plenty of money to withstand the downward pressure, build brands, build channels and promote products. However, since the listing, Lutes share price has evaporated 45%, and the turnover is also very low, indicating that the market has a negative view of Lutes.

Of course, with Geely on his back, Lutes may not need to worry about money. For Geely, Lutes, as a well-known sports car brand, historical reasons mean that it cannot compete with Porsche and Ferrari, so it is not expected that Lutes can bring considerable sales and revenue, as long as Lutes is a flow window, it is always active in the vision of consumers. After all, Lutes is one of Geely's top supercar brands. Whether it is to enter the global market or the ultra-luxury market, the development is still of great significance.

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