Swedish electric vehicle manufacturer, Polestar, reaffirmed its commitment to achieving its projected target of delivering no less than 60,000 electric vehicles (EVs) within the current year, maintaining a favorable gross margin. The company’s announcement was unveiled as part of its Q2 earnings report. Despite this affirmation, Polestar’s shares saw a 9% decline in early trading following the disclosure. The company’s stock has encountered a 35% decrease within the year.
Polestar reported a net loss of $304.1 million, translating to 14 cents per share, for the quarter. On an adjusted basis, the loss stood at $334.4 million. In comparison, the net loss a year prior was $228.2 million, or 12 cents per share, with an adjusted loss of $296.2 million during the corresponding period. In contrast, revenue experienced growth, surging from $589.1 million in the same quarter last year to $685.2 million this quarter.
The second quarter witnessed Polestar delivering 15,765 vehicles, marking a 36% increase from the preceding year. Collectively, the company managed to deliver 27,841 vehicles in the first half of 2023. The company reiterated its guidance from May, affirming its intentions to produce between 60,000 and 70,000 vehicles within this year, while targeting a gross margin of 4%. This is in contrast to a 1.4% gross margin in H1 2023 and a 4.9% margin in 2022.
As of the conclusion of Q2, Polestar held $1.06 billion in cash and equivalents, an upswing from $884.3 million at the end of March. CEO Thomas Ingenlath celebrated the record volume growth during the second quarter, highlighting the intensified deliveries of their upgraded Polestar 2. Furthermore, he expressed excitement about the approaching production of Polestar 4 in November and Polestar 3 in early 2024.
The forthcoming Polestar 3, a sizable electric SUV, will be based on a novel platform co-developed with Volvo Cars. Originally slated for a 2023 release, software delays prompted the company to push the launch to early 2024. Conversely, the Polestar 4, a compact crossover SUV built on a separate platform, remains on track for production in November, with deliveries set to commence in China by the end of 2023 and elsewhere in early 2024.
