Increased loss for Polestar

The electric car manufacturer Polestar reports an increased loss for the first quarter of the year. The company's revenue also decreased - but delivery volumes have recovered during the second quarter.

» Updated:

» Published:

Increased loss for Polestar
Photo: Anders Wiklund/TT

Share this article

The electric car manufacturer Polestar reports an increased loss for the first quarter of the year. The company's revenue also decreased, but delivery volumes have recovered during the second quarter.

The Gothenburg-based car manufacturer has struggled with several challenges recently, including write-downs and delayed annual reports.

Now, when reporting the first quarter results, the operating loss is significantly higher, $231.7 million, compared to the same quarter last year ($219.9 million).

More cars sold

Revenue has simultaneously decreased by 36 percent to $345.3 million.

In the first quarter, the delivery volume amounted to 7,200 electric cars. However, the volume has since increased to 13,000 cars in the second quarter, according to Polestar.

These figures come after Polestar reported an operating loss of $1.46 billion (corresponding to 15.5 billion kronor) for the full year 2023 just last week.

However, CEO Thomas Ingenlath expects better results for the rest of 2024 and onwards:

"We expect a significant revenue improvement in the second quarter," he writes in the interim report.

He also flags new measures to improve profitability, aiming for a "cash flow break-even result by the end of 2025" and plans to provide "an updated guidance later this year".

Lost 93 percent of market value

The background is that the production of the Polestar 3 model is expected to start at the end of the summer, and the next model, Polestar 5, is planned to begin production in the second half of 2025.

However, the company has had a tough ride on the stock market in recent years. Since the spin-off from Volvo Cars in late June 2022, the company has lost 93 percent of its market value. Just since the beginning of the year, the decline is nearly 60 percent.

Volvo Cars currently owns 18 percent of Polestar, down from over 48 percent at the beginning of the year.

Correction: An earlier version incorrectly stated the delivery volume for the second quarter of the year.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Trump Proposes Ending Quarterly Reports for Wall Street Companies

Trump Proposes Ending Quarterly Reports for Wall Street Companies

EU Regulators Seek Stricter Crypto Supervision by ESMA

EU Regulators Seek Stricter Crypto Supervision by ESMA

Elon Musk Buys $1 Billion in Tesla Shares, Boosting Stock by 7%

Elon Musk Buys $1 Billion in Tesla Shares, Boosting Stock by 7%

China Investigates Nvidia for Competition Law Violations

China Investigates Nvidia for Competition Law Violations

USA and China Reach Framework Agreement on Tiktok's Future

USA and China Reach Framework Agreement on Tiktok's Future

Black Soldier Fly Oil and Protein Developed for Animal Feed

Black Soldier Fly Oil and Protein Developed for Animal Feed

Basmati Rice Dispute Stalls EU-India Trade Agreement

Basmati Rice Dispute Stalls EU-India Trade Agreement

Gaming Companies Lead Gains in Slightly Rising Stockholm Stock Market

Gaming Companies Lead Gains in Slightly Rising Stockholm Stock Market

Sweden Construction Costs Rise 0.4% in August Amid Higher Electricity Prices

Sweden Construction Costs Rise 0.4% in August Amid Higher Electricity Prices

Swedes Report Decreased Satisfaction with Banks This Year

Swedes Report Decreased Satisfaction with Banks This Year

Fashion Trade Sales Rise for Third Consecutive Month

Fashion Trade Sales Rise for Third Consecutive Month

Powell's Rate Signal Influences Swedish Households Too

Powell's Rate Signal Influences Swedish Households Too

Asian Markets Rise Despite Weak China Data

Asian Markets Rise Despite Weak China Data

ANZ Bank Faces Record Fines for Bond Deal Misconduct

ANZ Bank Faces Record Fines for Bond Deal Misconduct

Trump Welcomes Foreign Investment and Workforce in the USA

Trump Welcomes Foreign Investment and Workforce in the USA

Government Boosts Support for Sweden's Regional Airports

Government Boosts Support for Sweden's Regional Airports

Klarna CEO: Embracing "Swedishness" as a Key Asset

Klarna CEO: Embracing "Swedishness" as a Key Asset

Handelsbanken Swish Payment Disruption Resolved

Handelsbanken Swish Payment Disruption Resolved

Government Proposes Increased Export Credit Guarantees for Swedish Companies

Government Proposes Increased Export Credit Guarantees for Swedish Companies

AstraZeneca Halts UK Research Facility Expansion Plans

AstraZeneca Halts UK Research Facility Expansion Plans