Automotive News Europe — 2024-08-29
Automotive Industry
Polestar remains confident of a stronger second half to the year (2024).
Polestar posted another heavy quarterly loss as the electric-vehicle maker struggles with intensifying competition, high costs and a demand slowdown.
The automaker reported a $242.3 m operating loss for the second quarter, although this was slightly narrower than the corresponding three-month period in 2023.
Revenue dropped 17% to $574.9 m due to “lower global volumes and higher discounts,” Polestar said on 29 August 2024.
Once a vanguard of the EV movement, Polestar is grappling with high costs and increasing competition from new players, including from China.
At the same time, consumer demand for EVs is waning amid high inflation and the end of subsidies in key markets, forcing some automakers to offer discounts.
Polestar’s share price has plunged by more than 90% since spinning out of Volvo two years ago.
The turnaround effort will be led by ex-Opel chief Michael Lohscheller, who will replace CEO Thomas Ingenlath in October 2024, the company announced on 28 August 2024.
Polestar delivered 13,150 cars in the second quarter, an 83% jump from the first three months of the year but fewer than the comparable period in 2023.
The company, which is part-owned by Chinese billionaire Li Shufu, has said previously that its Polestar 3 and 4 models would help boost sales to more than 155,000 vehicles in 2025.
The automaker said it remains confident of a stronger second half to the year, particularly in the last few months when sales of the two premium SUVs should grow.
The company recently started production of the Polestar 3 in the US to sidestep the nation’s tariffs on Chinese-made EVs.
The $73,400 model, which was delayed due to software issues, is being assembled at a Volvo factory in Ridgeville, South Carolina and will be sold in the US and Europe.
The SUV has been made at a plant in China since February 2024.