Polestar Face Turbulence With $242 Million Loss Amidst Falling EV Deliveries In Q2

Polestar is navigating turbulent waters as it reported weaker Q2 deliveries for its electric vehicles (EVs) and significant operating losses of $242 million, coinciding with major leadership changes. 

According to Polestar, the company delivered 13,150 vehicles in Q2 2024, marking an 82% increase from Q1 but a 16% decrease compared to the same period last year. The company’s revenue fell 26% to $918 million, primarily due to lower global volumes. 

For the first half of 2024, Polestar reported a total delivery of 20,371 EVs, which is down 27% year-over-year. Moreover, Polestar reported a $541 million net loss, which is up 59% from the first half of 2023.

Polestar had also recently announced that CEO Thomas Ingenlath, who has led the company since its founding in 2017, will step down. Michael Lohscheller, a former executive at Opel, VinFast, and Nikola, will take the helm effective October 1, 2024. 

Read More: Polestar Appoints Michael Lohscheller As New CEO Amidst EV Market Challenges

As Polestar faces several headwinds with intense competition in the EV market, the company remains optimistic about the second half of 2024, particularly Q4 when sales of the new SUV models are projected to ramp up. The company maintains its goal of selling over 155,000 units in 2025, a big leap from the approximate 55,000 units sold in 2023.

Financial Outlook and Investor Sentiment

While Polestar’s stock showed a surprising uptick following the Q2 report, it remains down 50% year-to-date and 70% over the past year. Notably, the company secured an additional $300 million in funding through a one-year term loan, but questions remain about long-term profitability and funding, especially after co-founder Volvo Cars announced it would stop funding them.

In addition, the release of its Polestar 3 and 4 models in the EV market are set to elevate the company’s sales performance and reinvigorate its brand against its competitors across global markets.

As Polestar navigates this critical juncture, all eyes will be on the new leadership and the performance of its latest EV models as the industry sees whether it can change the tides in this increasingly competitive global EV market.

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