Polestar, the Swedish electric vehicle (EV) company, experienced a 40% decrease in deliveries during the first quarter. This decline in sales is reflective of the broader struggle within the EV sector, as demand for these vehicles has slowed down. While automakers and suppliers are optimistic about future EV demand, the reality is that sales growth has not kept pace with the investment in capacity and technology development. As a result, companies are under increasing pressure to cut costs.
During the first quarter, Polestar delivered 7,200 vehicles, a significant drop from the 12,076 vehicles delivered in the same period the previous year. However, the company remains hopeful that the introduction of its two luxury SUVs, the Polestar 3 and Polestar 4, will contribute to revenue growth in the latter part of the year. Thomas Ingenlath, CEO of Polestar, emphasized that these two models will serve as a strong foundation for revenue and margin progression in the second half of 2024, supporting their ambitious target of delivering 155,000-165,000 cars by 2025.
In terms of specific models, Polestar reported delivering 1,200 units of the Polestar 4 SUV coupe in China during the first quarter. China was the first country to receive this model at the end of 2023. Additionally, global deliveries of the Polestar 3 are scheduled to begin in the second quarter of 2024. The Polestar 4 is expected to reach customers in Europe and Australia in August, with deliveries in America anticipated later in the year.
However, it’s worth noting that enthusiasm from investors for EV manufacturers has waned due to the slowdown in sales growth and mounting financial losses. This situation has been particularly challenging for start-ups like Polestar. In fact, Volvo Cars, a financial backer of Polestar, announced in February that it would no longer provide additional funding to the company. Volvo Cars plans to transfer most of its stake in Polestar to its shareholders, such as Geely.
Looking ahead, Polestar is set to release its postponed fourth-quarter results on April 30 and first-quarter results on May 23. These reports will provide a clearer picture of the company’s financial performance and shed light on its future prospects. Despite the current challenges faced by the EV sector, Polestar remains committed to its goals and is actively working towards achieving them.
