Polestar reports development delays and headcount freeze

Polestar has reported record first quarter deliveries of 12,076 cars, up 26% year on year and says it enters the second quarter with good commercial momentum . 

But the company also says that it is intensifying its focus on cost management, including a global hiring freeze and 10% headcount reduction.

The final software development of the new all-electric platform shared by Volvo Cars has required more time and therefore delayed the start of production for the Polestar 3 which is now expected in the first quarter of 2024.

Polestar now predicts 2023 global volumes of 60,000 – 70,000 vehicles, representing annual growth of 16% – 36%, following record deliveries of 51,491 last year. There is no change to the start of production of Polestar 4, which is expected for China in the fourth quarter of 2023, and for other markets in early 2024.

The company has experienced strong growth over the past five years establishing a global footprint with more than 100,000 cars on the road across 27 markets. 

“We are taking necessary steps to strengthen Polestar in the near-term,” Polestar chief executive Thomas Ingenlath says. 

“While production of Polestar 3 will now start in the first quarter of 2024, the successful launch of Polestar 4 last month means that we add two strong offers in the attractive electric SUV market in 2024. I am confident that we will deliver on our growth ambitions and path towards profitability,” he says.