Polestar second-quarter loss widens as it ramps up EV deliveries
Polestar plans to manufacture 60,000 to 70,000 electric vehicles (EVs) in 2023 and will introduce two new models in the coming months.
The anticipated launch of the Polestar 3 SUV, originally slated for late this year, has been postponed to early 2024 due to setbacks with its Volvo-engineered software.
Credit: Polestar
On Thursday, Swedish electric vehicle manufacturer Polestar reaffirmed its expectation to deliver a minimum of 60,000 EVs in 2023, with a positive gross margin. It also confirmed that its next two new models are still scheduled to enter production as planned.
This information was disclosed as part of Polestar's second-quarter earnings report. The firm's shares dropped by 9% in early trading following the announcement. Polestar's stock has seen a nearly 35% decrease this year.
The firm reported a net loss of $304.1 million, or 14 cents per share, for the quarter. After adjustments, the loss amounted to $334.4 million.
In comparison, Polestar's net loss a year ago was $228.2 million, or 12 cents per share, with an adjusted loss of $296.2 million for that period.
Second-quarter revenue rose to $685.2 million, up from $589.1 million in the same quarter the previous year.
Polestar delivered 15,765 vehicles in the second quarter, a 36% increase from the previous year, and a total of 27,841 vehicles in the first half of 2023.
The firm reiterated the guidance it provided in May, stating that it still anticipates producing between 60,000 and 70,000 vehicles in 2023, with a gross margin of 4% for the year. Polestar's gross margin was 1.4% in the first half of 2023 and 4.9% in 2022.
In 2022, the automaker delivered 51,491 vehicles.
As of the end of the second quarter, Polestar had $1.06 billion in cash and equivalents, compared to $884.3 million as of March 31.
CEO Thomas Ingenlath stated in a press release, "We achieved record volume growth during the second quarter. Deliveries of our significantly upgraded Polestar 2 are now ramping up. With Polestar 4 expected to start production in November and Polestar 3 in the first quarter of next year, we are entering an exciting phase of higher volumes and value from our expanded model range.”
The forthcoming Polestar 3, a large electric SUV, is built on a new platform developed by (and shared with) Volvo Cars. It was initially expected to launch before the end of 2023, but software delays with the platform will push the launch to early 2024, as Polestar announced in May.
The Polestar 4, a smaller crossover SUV, will be constructed on a separate platform and is still scheduled to enter production in November as initially planned. Deliveries are expected to start in China before the end of 2023, and in other markets in early 2024.