Shares of Lotus Technology Inc. (NASDAQ: LOT) surged 6.98% in Wednesday's intraday trading session, following the release of the company's fourth-quarter earnings report and optimistic analyst projections for future profitability. The electric vehicle maker's stock climbed despite facing challenges in the competitive EV market.

The Q4 earnings report, released late Tuesday, showcased strong growth for Lotus Technology amid industry-wide challenges. While specific figures were not disclosed, the company's performance appears to have impressed investors, leading to the significant stock price increase.

Adding to the positive sentiment, industry analysts have provided an optimistic outlook for Lotus Technology's path to profitability. According to recent analysis, the company is expected to break even in approximately two years, with predictions of turning a profit of $62 million by 2027. To achieve this milestone, analysts estimate that Lotus Technology will need to maintain an ambitious average annual growth rate of 78%.

Despite the current loss-making status of the company, with a reported loss of $1.1 billion for the most recent financial year, investors seem to be focusing on the potential for future growth and profitability. The market's reaction suggests confidence in Lotus Technology's ability to capitalize on the expanding electric vehicle market and execute its business strategy effectively.