Lotus Tech Responds to Canada's New Tariff Policy, Positive for Eletre Model in the Country
Rhea-AI Summary
Lotus Technology (NASDAQ: LOT) said Canada’s new tariff policy reduces tariffs on Chinese EVs from 100% to 6.1% and permits an initial annual cap of 49,000 Chinese EVs, which the company says benefits its Eletre model. Lotus notes North American homologation for Eletre was completed in 2024 and that the vehicle is the only Chinese-made EV positioned above US$80,000 in North America. The company projects the Eletre’s planned retail price in Canada could fall by about 50%, and expects accelerated wholesale deliveries using its existing Canadian network of 6 authorized dealers and 210 regional stores globally.
Positive
- Canada tariff cut to 6.1% with a 49,000 annual cap
- Eletre completed North American homologation in 2024
- Projected ~50% reduction in planned retail price in Canada
- 6 authorized dealerships in Canada and 210 regional stores globally
Negative
- Policy permits initial cap of 49,000 vehicles, limiting immediate volume upside
- Price reduction guidance is approximate and not a binding guarantee
Key Figures
Market Reality Check
Peers on Argus
LOT gained 2.82% while key auto peers were mostly negative: CYD -1.36%, LVWR -9.3%, VLCN -7.28%, PSNYW -3.5%, with only NWTN +16.81%. Moves do not show a unified sector trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 29 | Strategic investment | Positive | +6.1% | ECARX agreed to invest US$23M via private placement at US$1.37 per share. |
| Dec 29 | Partnership funding | Positive | +6.1% | ECARX detailed US$23M share subscription to deepen global technology partnership. |
| Dec 12 | Product launch | Positive | +1.5% | Debut of first PHEV with China launch planned for Q1 2026 and overseas rollouts. |
| Nov 24 | Earnings results | Negative | -1.6% | Q3 revenue and deliveries fell YoY despite improved gross margin and narrower losses. |
| Nov 10 | Earnings date notice | Neutral | -4.3% | Announcement of date and time for Q3 2025 earnings release and conference call. |
Past news events have generally led to modest single-digit percentage moves that align with the apparent news tone, with no clear pattern of sharp divergences.
Over recent months, Lotus Tech has combined strategic financing with product expansion. On Dec 23, 2025, a US$23 million private placement with ECARX at US$1.37 per share accompanied a 6.11% gain. Earlier, the company announced its first PHEV, debuting on Dec 5, 2025, ahead of a planned Q1 2026 China launch. Q3 2025 results on Nov 24, 2025 showed revenue declines but improved gross margin to 8% and narrower losses. The current Canada tariff news adds a policy-driven demand catalyst to this trajectory.
Market Pulse Summary
This announcement highlights a major policy tailwind, as Canada reduced tariffs on Chinese EVs to 6.1% with an annual cap of 49,000 vehicles, enabling an expected ~50% Eletre price cut in Canada. Combined with 210 stores across 61 countries and 6 Canadian dealerships, Lotus Tech has infrastructure to pursue growth. Investors may watch Canadian delivery trends, pricing realization versus plans, and how this opportunity complements recent financing and product launches.
Key Terms
homologation technical
AI-generated analysis. Not financial advice.
- Canada slashes
100% tariffs on Chinese EVs to6.1% , directly benefiting Lotus Technology Inc. (NASDAQ: LOT)—the only mobility provider with Chinese-made EV entering the North American market above the$80,000 price segment. - Under the new policy, the planned retail price of the Eletre in Canada is expected to be revised down approximately
50% , with wholesale deliveries projected to achieve exponential growth. - Leveraging its North American homologation completed in 2024 and well-established retail network of authorized dealers in Canada, Lotus Tech is well-positioned to capitalize on this market opportunity.
NEW YORK, Jan. 17, 2026 (GLOBE NEWSWIRE) -- Lotus Technology Inc. (“Lotus Tech” or the “Company”) (Nasdaq: LOT), a leading global intelligent and luxury mobility provider has expressed significant attention and a warm welcome to the new tariff policy announced by the Canadian government. Prime Minister Mark Carney announced that Canada will allow an initial annual cap of 49,000 Chinese electric vehicles (“EV”) into the Canadian market under a preferential tariff rate of
It opens a compelling opportunity for strategic repositioning for Lotus Tech. As the brand's first all-electric hyper SUV, Eletre, with its outstanding product capabilities, successfully completed rigorous North American market homologation in 2024. It stands as the only Chinese-made EV currently entering the North American market in the price segment above US
The Company's global strategic layout with 210 regional stores covering 61 countries has laid a solid foundation for seizing this opportunity. Lotus Tech has a well-established retail network across Canada with 6 authorized dealerships, offering a full range of services from classic internal combustion engine models to the latest electric products. Thanks to its pre-established market access homologation and channel development, Lotus Tech is well-positioned to swiftly translate the policy benefits into market share.
Mr. Qingfeng Feng, Chief Executive Officer of Lotus Tech, commented: “Canada has always been a strategically vital market within Lotus’ global footprint, where auto consumers possess a high appreciation for performance and driving pleasure. We extend our warm welcome to the new, optimized tariff policy, which creates a more open and fair market environment for international auto brands. Building upon our prior groundwork in the North American market, we will seize this opportunity to enhance investment in Canada to explore any potential tactical advantages and strengthen our footprint in the North American market. We are committed to pursuing growth in a disciplined manner that aligns with market development and creates sustainable value."
About Lotus Technology Inc.
Lotus Technology Inc. has operations across the UK, the EU and China. The Company is dedicated to delivering luxury lifestyle electric vehicles, with a focus on world-class R&D in next-generation automobility technologies such as electrification, digitalisation and more. For more information about Lotus Technology Inc., please visit www.group-lotus.com.
Forward-Looking Statements
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential”, “forecast”, “plan”, “seek”, “future”, “propose” or “continue”, or the negatives of these terms or variations of them or similar terminology although not all forward-looking statements contain such terminology. Forward-looking statements involve inherent risks and uncertainties, including those identified under the heading “Risk Factors” in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Lotus Technology Inc. undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Contact Information
For investor inquiries
ir@group-lotus.com
FAQ
What change did Canada announce on tariffs for Chinese EVs and how does it affect LOT?
How much could the Lotus Eletre price change in Canada after the tariff adjustment for LOT?
Is Lotus Eletre approved for the North American market (LOT)?
How extensive is Lotus’s dealer presence in Canada to support LOT sales growth?
Does the Canadian tariff change guarantee unlimited Eletre imports for LOT?
