(Bloomberg) -- Lotus Technology Inc. shares were volatile in their first trading session following a merger with a blank-check vehicle, after opening well above the SPAC’s closing price on the previous day.

The shares ended the day at $13.80, 2.2% above Thursday’s close for LVMH-backed L Catterton Asia Acquisition Corp. They opened at $17.99 each, about a third higher than where the SPAC ended yesterday, and briefly plunged 25% below that day’s closing price before rebounding.

Lotus is banking that the cachet of its luxury EV models as well as potential tie-ups with luxury goods giant LVMH will help the sports-car maker’s electric arm avoid the same stock market fate as its ailing rivals.

The manufacturer’s models will appeal to an under-served luxury EV market, Chief Executive Officer Feng Qingfeng said in an interview, ahead of the start of trading. The deal is expected to value the maker of the £89,500 ($113,630) Eletre SUV at around $7 billion.

“We are different from other brands and our product is also different from other brands’ products,” he said, speaking through an interpreter, as he sought to distance Lotus Technology from other electric car companies such as Rivian Automotive Inc. and Lucid Motors Inc., which have seen their shares dive alongside cut jobs and pared back production plans.

The decision by Chinese owner Zhejiang Geely Holding Group Co Ltd., who also owns Volvo Car AB and Polestar Automotive Holding UK, to list Lotus Technology comes at a tough time for the EV market. Last month, Renault SA scrapped a planned listing for its EV arm and Volkswagen AG has pulled back on plans for an initial public offering of its battery unit as battery-car uptake has veered off course. 

Read More: Lotus Debut to Test Waning Appetite for EVs and SPACs

Chief Financial Officer Alexious Lee said potential tie-ups with LVMH Moet Hennessey Louis Vuitton SE, which owns brands such as watchmakers Tag Heuer and Hublot, would boost Lotus’s profile among luxury buyers.

“We are empowered through the partnership with L Catterton through access to resources such as consumer insights and also LVMH,” Lee said. “We look at potential collaboration in terms of co-branding, co-marketing and many other prospective potentials.”

LVMH’s North America Chairman Anish Melwani will join Lotus Technology’s board. 

The company, founded in 1948 in the English county of Norfolk, became popular for its lightweight sports cars and was helped by its association with Formula 1 and the Lotus Esprit that featured in the James Bond movie ‘The Spy Who Loved Me.’

The manufacturer suffered as consumers began to buy more SUVs before Geely rescued Lotus in 2017. The British sports-car unit isn’t part of the listing and will remain wholly-owned by Geely. Lotus is aiming to go all-electric by 2028.

The company’s building electric models that cost between $80,000 and $150,000, including more SUVs. Revenue is expected to rise above $8 billion in 2025, according to a December presentation.

Read More: Volvo Car to Slash Polestar Stake as EV Shift Stumbles

Geely, which is owned by billionaire Li Shufu, has had its own trouble with another electric car brand it controls. The Chinese company is preparing more funding for struggling EV maker Polestar, which has been hit by a slower-than-expected ramp up and the broader EV slowdown. 

Geely also has stakes in Germany’s Mercedes-Benz Group AG and another British sports-car maker, Aston Martin Lagonda Global Holdings Plc.

As part of the listing, Lotus raised more than $880 million to underpin its expansion plans. 

--With assistance from Ryan Gould and Angelina Rascouet.

(Updates with trading in first two paragraphs.)

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