Lotus Technology Inc. entered into a share‑subscription agreement with ECARX Holdings Inc. on December 23, 2025, and publicly disclosed the deal on December 29, 2025. The private placement will issue 16,788,321 newly issued ordinary shares at $1.37 per share, raising $23 million in equity capital that is expected to close within 30 days of the agreement date.
The infusion of working capital is intended to accelerate Lotus’s electrification roadmap, including the launch of a plug‑in hybrid platform, and to integrate ECARX’s Pikes computing platform and Cloudpeak software stack into Lotus vehicles worldwide. ECARX’s technology is designed to deliver advanced AI‑driven cockpit experiences, such as AI agents, navigation, and infotainment, and has already been deployed in Lynk & Co models. By embedding these capabilities, Lotus aims to enhance its intelligent driving and cockpit offerings while expanding its global reach.
Management highlighted the strategic nature of the partnership. CEO Qingfeng Feng said the investment “strengthens our long‑standing collaboration with ECARX and underscores our shared commitment to accelerate innovation of next‑generation intelligent cockpit ecosystems.” ECARX’s CEO Ziyu Shen added that the deal “builds on the deep technical collaboration we already share and positions Lotus to establish a robust foundation for the next‑generation intelligent driving experience worldwide.”
The transaction comes at a time when Lotus has been grappling with rapid cash burn and thin gross margins. The $23 million injection is expected to provide a critical liquidity buffer, allowing the company to continue investing in R&D and production while managing short‑term cash needs. Analysts note that the capital raise signals confidence from a peer company and may help mitigate investor concerns about Lotus’s financial sustainability.
ECARX’s stock reacted positively to the announcement, rising 5.2% in Monday’s pre‑market trading. The market view the deal as a catalyst for ECARX’s international expansion and a validation of its technology platform, which is now being deployed in a broader range of vehicles.
The partnership is expected to accelerate Lotus’s transition to electrified and connected vehicles, positioning the company to compete more effectively in the rapidly evolving automotive landscape. The investment also strengthens the strategic alliance between the two Nasdaq‑listed firms, potentially opening doors for future joint development and market penetration initiatives.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.