The release of the Polestar 3 SUV has been delayed until early 2024 due to software setbacks. Initially expected to debut later this year, the delay is attributed to Volvo-developed software issues.
Image Source: Courtesy of Polestar
Swedish electric vehicle manufacturer, Polestar, has reaffirmed its commitment to delivering a minimum of 60,000 EVs in 2023, while maintaining a positive gross margin. Furthermore, the company has confirmed that its next two models are still on track for production as originally planned.
This announcement was made as part of Polestar’s Q2 earnings report, which revealed a net loss of $304.1 million, or 14 cents per share. When adjusted, the loss amounted to $334.4 million.
A year ago, Polestar reported a net loss of $228.2 million, or 12 cents per share, with an adjusted loss of $296.2 million for the same period. However, revenue for Q2 has surged from $589.1 million to $685.2 million year-on-year.
Polestar achieved a 36% increase in vehicle deliveries, selling 15,765 units in Q2, bringing the first half-year total to 27,841 vehicles.
The company maintains its guidance from May, with projections of producing between 60,000 and 70,000 vehicles in 2023 and achieving a gross margin of 4% for the year. In H1 2023, Polestar reported a gross margin of 1.4%, while 2022 saw a margin of 4.9%. The automaker delivered 51,491 vehicles in 2022.
As of the end of Q2, Polestar’s cash and equivalents totaled $1.06 billion, up from $884.3 million at the end of Q1.
In reaction to the news, Polestar’s shares dropped over 4% in premarket trading, contributing to a nearly 28% decline in share value so far this year.
CEO Thomas Ingenlath commented, “We experienced record volume growth in Q2. Deliveries of our significantly enhanced Polestar 2 are currently increasing. With the upcoming production of the Polestar 4 in November and the Polestar 3 in Q1 of next year, we are entering an exciting phase of increased volume and value from our expanded model range.”
The upcoming Polestar 3, a large electric SUV, is based on a new platform developed by and shared with Volvo Cars. Originally slated for release by the end of 2023, delays in the platform’s software will push the debut to early 2024, as previously announced in May.
On the other hand, the Polestar 4, a smaller crossover SUV, remains on schedule for production in November with deliveries expected to begin in China before the end of 2023, followed by other markets in early 2024. It will be built on a different platform.
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