LOBO EV signs LoI with Texas-based APOZ for US manufacturing

WUXI, China - LOBO EV Technologies Ltd. (NASDAQ:LOBO), a micro-mobility company with a market capitalization of $4.84 million and significant revenue growth of 37% in the last twelve months according to InvestingPro, has entered into a letter of intent for a strategic partnership with Texas-based Asia Pacific Opportunity Zone (APOZ), according to a press release statement issued Wednesday.

The agreement aims to establish a U.S.-based operational and production footprint for the Chinese electric mobility company amid rising U.S.-China tariff tensions. LOBO plans to rent manufacturing facilities from APOZ after construction of its opportunity zone is completed. While the company maintains a healthy current ratio of 1.52, InvestingPro data indicates it’s currently experiencing rapid cash burn, making this expansion particularly strategic.

APOZ is led by David Champ, CEO of ASC Global Inc., a wholly-owned subsidiary of Token Communities. The opportunity zone is located in Winnie, Texas, approximately 50 miles east of Houston.

Under the partnership, LOBO will manufacture its electric mobility products including e-bikes, personal scooters, and AI-integrated elderly scooters at the Texas facility. The company indicated the U.S. would also serve as a strategic manufacturing and distribution hub for expansion into European markets.

"This is a defining moment of global acceleration for LOBO EV," said Huajian Xu, CEO of LOBO EV. "This is a multi-billion-dollar opportunity, and we’re entering with the product and vision to lead." The company’s ambitious outlook comes despite challenging market conditions, with InvestingPro showing a 79% decline in stock value over the past year and modest gross profit margins of 11.6%. InvestingPro subscribers have access to 14 additional key insights about LOBO’s financial health and growth prospects.

David Champ, CEO of APOZ, stated the partnership would "introduce highly advanced electric vehicle solutions into communities that demand cleaner, more convenient, and more inclusive mobility."

The companies plan to focus initial rollouts on metropolitan areas in Italy, Spain, and parts of Eastern Europe, as well as East and West Coast urban centers in the U.S., along with Florida and Arizona.

The micro-electric vehicle market is projected to exceed $60 billion across North America and Europe by 2030, according to the press release.

In other recent news, LOBO EV Technologies Ltd. has announced financial guidance for 2025, forecasting a revenue range of $28 million to $30 million, marking a 41.5% increase from the 2024 revenue of $21.2 million. This growth is driven by strong sales of electric bikes and tricycles. Despite a net loss in 2024, the company reported a revenue increase of 36.9% to $21.2 million and a gross profit rise of 11.2% to $2.5 million. Additionally, LOBO has entered a strategic partnership with a U.S.-based distributor in Atlanta, expected to generate $6 million in revenue from the sale of 5,000 electric vehicles.

The company also unveiled a second-generation multi-functional robotic platform, which can be customized for various tasks, including emergency services. However, LOBO is facing a potential Nasdaq delisting due to not meeting the minimum bid price requirement, with a deadline to regain compliance by November 2025. Amid these developments, LOBO continues to expand its international distribution network and invest in AI-powered EV models. The company’s strategic moves include increasing R&D investments and forming partnerships to deepen market penetration.

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