Polestar publishes results for the first quarter and reports 80% growth in global deliveries for the second quarter

Polestar, reports its preliminary unaudited financial and operational results for the three months ended March 31, 2024 and reports its global deliveries for the second quarter of 2024.

Polestar delivered approximately 13,000 cars in the second quarter, a growth of 80% compared to the previous quarter. This takes global deliveries for the first six months of the year to 20,200 with USA, Sweden, Norway and Germany delivering a strong momentum.

Thomas Ingenlath, Polestar CEO, said: “We have strong momentum as we enter the second half of the year. Our two new SUV’s 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.

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.”

Recent developments:

• Polestar’s Board of Directors has appointed Winfried Vahland Board Chair, succeeding Håkan Samuelsson who intends to retire after the upcoming AGM.
• Board of Directors is further strengthened with the appointment of two additional directors (subject to approval at the upcoming AGM) with Christine Gorjanc and Xiaojie Shen (Laura) bringing significant automotive, finance and reporting expertise.
• Carla De Geyseleer, Audit Committee Chair, has chosen to focus on her executive role and will not stand for re-election as Director. Christine Gorjanc has been proposed as Audit Committee Chair.
• 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.
• Strengthened sales management team with strategic appointments in key markets, driving sales growth with increased market presence.
• Accelerated geographic expansion plans to enter seven new markets during 2025, France, Czech Republic, Slovakia, Hungary, Poland, Thailand and Brazil via local distribution partnerships.
• Global press drive for Polestar 3 and Polestar 4 has resulted in stellar reviews across key markets.
• Customer deliveries of Polestar 3 have started and will ramp-up during the summer.
• Staff reductions announced in January now implemented, resulting in 15% fewer positions, in addition to 10% reduction in summer of 2023.
• Reduction in supply chain emissions by integrating renewable fuels for ocean freight and inbound component supplies.
• Polestar and StoreDot successfully charge Polestar 5 prototype from 10-80% in 10 minutes.
• Polestar and Plugsurfing have launched Polestar Charge, adding over 650,000 compatible Polestar car charging points for our customers.
• Partnership announced with Zaptec, offering customers home charging solutions as part of their Polestar ownership experience.

Outlook

Sales momentum seen in the second quarter had a positive impact on inventory levels and cash flow. Polestar remains confident of an even stronger uptick in deliveries through the second half of the year, as sales of the two premium SUVs build.

Though the business has increasing momentum, there are short-term impacts from the introduction of import duties, alongside continued pricing pressure in global EV markets, including China.

In light of these factors and to meet its target of cash-flow breakeven towards the end of 2025, Polestar is adapting its business plan, including implementing additional mitigating actions, and expects to provide updated guidance later in the year.

Key financial highlights

The below table summarises key preliminary, unaudited financial results for the three months ended March 31, 2024.

• Revenue decreased by USD 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 China JV.
• Gross result decreased by USD 54 million to a gross loss of USD 30.8 million with lower vehicle sales and higher discounts.
• 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.
• Research and development expenses decreased by USD 23.9 million or 67% to USD 11.8 million mainly due to higher capitalization of internal development program expenditures for future car models and Polestar 2 IP amortization now being capitalized in inventory. We continue to invest in future vehicles and technologies.
• Other operating income increased by USD 16.2 million to USD 23.1 million, primarily due to positive foreign exchange effects on working capital and sales of services to related parties.
• Operating loss increased by USD 11.8 million or 5%, with lower revenue only partially offset by active cost management actions and higher other operating income.

Cash flow highlights

The below table summarises cash flow for the three months ended March 31, 2024.