Polestar reports 80% global delivery growth in Q2, 2024

Polestar delivered 7200 cars in Q1 2024 and 20,200 year-to-date, with Q2 2024 deliveries of about 13,000 cars up 80% compared to Q1 2024, the company says.

A new retail model, geographic expansion, growing line-up and sales organisation changes are driving future sales growth, says Polestar.

It has announced completed staff reductions resulting in 15% fewer positions, in addition to a 10% reduction in 2023.

Polestar says the USA, Sweden, Norway and Germany were especially strong markets.

“We have strong momentum as we enter the second half of the year,” says Polestar chief executive Thomas Ingenlath .

”Our two new SUVs have received stellar reviews from the global media and first test drive slots were booked out and additional slots are filling up fast. Our retail sales model shift is accelerating in Europe and we have strengthened our sales management team.

“Production of Polestar 3 in South Carolina is on-track to start at end of the summer and production of Polestar 4 is set to start in South Korea in the second half of 2025, diversifying our manufacturing footprint and mitigating impacts of the announced tariffs,” he says.

“We expect strong revenue improvement in the second quarter and are confident about our business performance in the latter part of the year.

“Looking further ahead, our model expansion and increased market presence – with seven new market launches to come in 2025 – will be key growth drivers for us.”

Polestar says its revenue decreased by US$198.1 million or 36% – mainly due to lower global vehicle sales, higher discounts driven by inventory management actions as well as complexities pertaining to revenue recognition on sales of cars to its China joint venture.

“Gross result decreased by US$54 million to a gross loss of US$30.8 million with lower vehicle sales and higher discounts,” it says.

“Selling, general and administrative expenses were slightly down, with active cost management actions offsetting costs for promotional activities related to commercial campaigns and events for Polestar 3 and Polestar 4 global launches.”

Polestar reports cash and cash equivalents of US$784 million as of March 31, 2024.

It says recent developments include Polestar’s board of directors appointing Winfried Vahland board chair, succeeding Håkan Samuelsson who intends retiring after the upcoming AGM.

Polestar is widening its retail footprint with existing and new partners, as part of a shift to a non-genuine agency sales model across Europe. Sweden and Norway switched to a non-genuine agency sales model in June with other key markets set to follow suit in the second half of the year.

The company expects to post its preliminary unaudited financial and operational results for the first six months of the year on Thursday, August 29, 2024, before the market opens in New York.

From Thursday, 15 August 2024, verified shareholders will be able to ask questions through the Say Technologies platform accessible via the Polestar investor relations website.

Global volumes decreased 4855 to 7221 cars, with the decline in the USA driven by the lower demand and the absence of Hertz sales, says Polestar.

 “Sales mix improved, with fleet sales declining in favour of increased retail sales. There was also an increased impact of used cars in our mix as they come into inventory in more meaningful way.

Polestar says it now has 182 locations and 1173 service points across its markets, up with 38 and 56 respectively when compared to the three months ended March 31, 2023.

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