Electric Vehicle Maker Polestar Sees 40% Drop in First-Quarter Deliveries
Polestar, a Swedish electric vehicle company, experienced a significant decline in first-quarter deliveries, with a 40% drop from the previous year. This decrease comes as the electric vehicle sector faces challenges with slowing demand despite continued investments in capacity and technology development. The company delivered 7,200 vehicles in the first quarter, down from 12,076 in the same period a year earlier.
### Impact of Sales Growth on the Electric Vehicle Sector
As automakers and suppliers focus on future demand for electric vehicles, the industry is grappling with a slowdown in sales growth. The situation is exacerbated by the pressure on companies to cut costs due to the imbalance between investment in capacity and technology development and the current demand for EVs.
### Polestar’s Strategy for Revenue Growth
Polestar CEO Thomas Ingenlath indicated that the ramp-up in deliveries of the Polestar 3 and Polestar 4 luxury SUVs will contribute to revenue growth in the latter part of the year. He mentioned that these two vehicles will play a crucial role in achieving strong revenue and margin progression during the second half of the year, supporting the company’s 2025 targets to deliver 155,000-165,000 cars.
### Expansion Plans for Polestar 3 and Polestar 4
The company revealed that it had delivered 1,200 units of the Polestar 4 SUV coupe in China during the first quarter, with the global deliveries of the Polestar 3 set to begin in the second quarter of 2024. The Polestar 4 will be first available to customers in Europe and Australia in August, with deliveries in the US expected later in the year.
### Investor Sentiment and Financial Challenges
Despite the initial enthusiasm for electric vehicle makers, investors are becoming more cautious as sales growth slows and financial losses accumulate. Polestar, a startup in the EV industry, has faced challenges meeting its targets, leading financial backer Volvo Cars to announce a halt in further funding for the company.
### Future Financial Reporting for Polestar
Polestar is scheduled to report its fourth-quarter results on April 30 and its first-quarter results on May 23. These financial updates will provide further insights into the company’s performance and its strategies for navigating the challenges in the electric vehicle sector.