EV maker Lotus Tech closes at record high in Nasdaq debut after SPAC merger

Shares of Lotus Technology rose 2% in their Nasdaq debut on Friday, reversing earlier losses, after the luxury electric car maker completed its merger with a blank check buyback firm backed by personally of L Catterton.

Shares of American Depository, which began trading under the new ticker “LOT,” ended at $13.80 after falling to $10.12. About 190,000 shares were traded. The SPAC closed at $13.51 on Thursday.

Lotus Technology was valued at about $7 billion in a deal with L Catterton Asia Acquisition Corp, a special purpose acquisition firm backed by Catterton. Lotus Technology is part of British sports car manufacturer Lotus Group, which in turn is owned by Chinese carmaker Geely and Malaysian Etika Automotive.

Lotus Technology is headquartered in the central Chinese city of Wuhan and produces cars through a partnership with Geely. The company designs, develops and markets luxury lifestyle EVs under the British Lotus brand, which was founded in 1948.

“Currently, access to the capital market through IPO… is the momentum for Lotus to expand internationally,” said Qingfeng Feng, chief executive officer of Lotus Tech.

As with other SPAC mergers, approximately 97% of LCAA shareholders repurchased their shares, leaving the trust with approximately $11 million in its coffers. Typically, stocks are susceptible to volatility if only a limited number of shares are available to the public.

Lotus Technologies has launched two EV models, including the first electric sports utility vehicle, the Eletre. Delivery of the model will begin in China in 2023 and will be followed in the UK and the European Union, the company said. It expects to begin producing cars in the United States later this year.

The company received $870 million in financing prior to the merger with LCAA. (Reporting by Echo Wang and Lance Tupper in New York; Editing by Cynthia Osterman)