Lotus Technology (LOT) stock is soaring 5.47% in Tuesday's trading session following the release of its unaudited fourth quarter and full year 2024 financial results, which showcase significant growth despite some challenges.

The luxury electric vehicle maker reported a 74% year-over-year increase in vehicle deliveries for 2024, reaching 12,134 units. This growth was accompanied by a 36% year-over-year increase in total revenue, which hit $924 million. The European market emerged as a key driver, contributing nearly 40% of total deliveries and achieving a remarkable 179% year-over-year growth rate.

However, the company faced some headwinds, including a decrease in gross margin from 15% in 2023 to 3% in 2024, and an increased net loss of $1,107 million, up 48% year-over-year. Despite these challenges, Lotus Technology is making strategic moves, including the potential acquisition of a majority stake in Lotus UK, which would consolidate all global business under the Lotus brand. The company also highlighted its continued focus on operational efficiency and cost optimization measures to improve profitability in the future.