Lotus Technology Inc. Announces US$23 Million Strategic Investment from ECARX Holdings Inc.
Rhea-AI Summary
Lotus Technology (Nasdaq: LOT) announced a strategic private placement with ECARX (Nasdaq: ECX) on Dec 23, 2025 under which ECARX agreed to subscribe for 16,788,321 newly issued ordinary shares at US$1.37 per share for a total of US$23 million. The placement is subject to customary closing conditions and is expected to close within 30 days of the subscription agreement. Shares purchased by ECARX will be subject to a six-month lock-up with customary exceptions. The companies described the investment as a move to broaden their collaborative framework and deepen a strategic global partnership to accelerate intelligent cockpit and AI-driven in-vehicle experiences.
Positive
- Proceeds: US$23 million from private placement
- Shares issued: 16,788,321 ordinary shares at US$1.37 each
- Strategic partnership: Deepens collaboration on intelligent cockpit and AI platforms
- Expected close: Transaction expected within 30 days of Dec 23, 2025
Negative
- Share issuance: 16,788,321 newly issued shares may dilute existing shareholders
- Lock-up term: ECARX shares subject to six-month lock-up limiting immediate resale
News Market Reaction – LOT
On the day this news was published, LOT gained 6.11%, reflecting a notable positive market reaction. Argus tracked a peak move of +4.3% during that session. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $57M to the company's valuation, bringing the market cap to $995M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peers show mixed moves: gains in NWTN +16.81% and CYD +0.22% versus declines in VLCN -7.28%, LVWR -0.22%, and PSNYW -1.82%, suggesting today’s LOT news is stock-specific rather than a broad auto-sector trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 12 | Product launch | Positive | +1.5% | First PHEV debut and planned China and overseas launches. |
| Nov 24 | Earnings update | Negative | -1.6% | Q3 revenue and deliveries down 46% YoY despite margin improvement. |
| Nov 10 | Earnings date notice | Neutral | -4.3% | Announcement of Q3 2025 results release and conference call schedule. |
| Aug 29 | Earnings update | Neutral | +0.0% | H1 2025 results with revenue decline but narrowed operating and net losses. |
| Aug 19 | Funding agreement | Positive | -2.4% | Up to $300M convertible notes and RMB1.6B credit facility to support growth. |
Stock often shows muted or negative reactions even to funding and product expansion news.
Over recent months, Lotus Tech has combined funding initiatives with product and market expansion. In August 2025, it secured up to $300M in convertible note commitments and a RMB 1.6 billion credit facility, followed by H1 and Q3 2025 results showing sharply lower revenue but narrowing losses. A new PHEV debut on Dec 12, 2025 brought only a modest positive move. Today’s $23M strategic equity investment from ECARX continues the focus on capital access and technology partnerships.
Market Pulse Summary
The stock moved +6.1% in the session following this news. A strong positive reaction aligns with the strategic nature of ECARX’s $23M investment and six-month lock-up, which may signal confidence in Lotus Tech’s platform collaboration. However, the stock traded about 70% below its $4.40 52-week high before this news and has a history of muted or negative responses to funding headlines, so past patterns suggest investors may reassess enthusiasm as dilution and execution risks are weighed.
Key Terms
private placement financial
lock-up period financial
registration regulatory
AI-generated analysis. Not financial advice.
NEW YORK, Dec. 29, 2025 (GLOBE NEWSWIRE) -- Lotus Technology Inc. (“Lotus Tech” or the “Company”) (Nasdaq: LOT), a leading global intelligent and luxury mobility provider, today announced that the Company entered into a share subscription agreement (the “Subscription Agreement”) with ECARX Holdings Inc. (“ECARX”) (Nasdaq: ECX), a global mobility technology provider, on December 23, 2025. ECARX has agreed to subscribe for and purchase from the Company, through a private placement, a total of 16,788,321 newly issued ordinary shares of the Company at a price of US
The strategic investment is designed to significantly broaden the collaborative framework between the two companies, deepening the existing relationship into a more integrated, strategic global partnership.
Mr. Qingfeng Feng, Chief Executive Officer of Lotus Tech, commented: “This investment strengthens our long-standing partnership with ECARX, a pivotal collaborator in our mission to redefine in-vehicle intelligence. This strengthened partnership underscores the deepened global collaboration with ECARX and our shared unwavering commitment to accelerate innovation of next-generation intelligent cockpit ecosystems to deliver unparalleled AI-driven experiences. It also demonstrates a strong vote of confidence in our long-term value creation for shareholders.”
Mr. Ziyu Shen, Chief Executive Officer and Chairman of ECARX, commented, “This strategic investment represents a natural and significant step forward in ECARX’s evolving partnership with Lotus Tech, building upon the deep technical collaboration we already share. Lotus is an iconic brand with strong global recognition, and I remain optimistic about its growth potential in international markets. I look forward to seeing ECARX’s Pikes computing platform combined with ECARX’s world-leading Cloudpeak software platform empower Lotus to establish a robust foundation for the next-generation intelligent driving experience worldwide.”
The securities offered in this private placement have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or any state or other applicable jurisdiction’s securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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.
About ECARX
ECARX (Nasdaq: ECX) is a global automotive technology provider with capabilities to deliver turnkey solutions for next-generation smart vehicles, from the system-on-a-chip (SoC) to central computing platforms and software. As automakers develop new vehicle architectures, ECARX is developing full-stack solutions to enhance the user experience while reducing complexity and cost.
Founded in 2017 and listed on Nasdaq in 2022, ECARX now has over 1,500 employees based in 13 major locations in China, UK, USA, Brazil, Singapore, Malaysia, Sweden and Germany. The co-founders are two automotive entrepreneurs: Chairman and CEO Ziyu Shen and Eric Li (Li Shufu), who is also the founder and chairman of Zhejiang Geely Holding Group. To date, ECARX products can be found in approximately 10 million vehicles worldwide.
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 did Lotus Technology (LOT) announce on December 23, 2025 regarding ECARX?
How much capital will Lotus Technology (LOT) raise from the ECARX private placement?
When is the ECARX investment in Lotus (LOT) expected to close and are there restrictions?
How many Lotus (LOT) shares is ECARX buying and at what price?
What strategic benefits does the US$23 million ECARX investment bring to Lotus Technology (LOT)?
