Polestar, a Swedish electric vehicle (EV) company, faced a big challenge in the first three months of the year. They saw a 40% drop in the number of cars they delivered compared to the same time last year. This news comes as the EV industry is having some difficulties with demand for electric cars slowing down.
While many companies are hopeful about the future of EVs, the reality right now is that not as many people are buying them as before. Polestar delivered 7,200 cars in the first quarter of this year. That’s a significant decrease from the 12,076 cars they delivered during the same period last year.
Polestar’s CEO, Thomas Ingenlath, shared some hope for the future, saying that they plan to increase deliveries of their luxury SUVs, the Polestar 3 and Polestar 4, later this year. He mentioned that these two cars will help the company make more money in the second half of the year and meet their goals for 2025, where they aim to deliver between 155,000 to 165,000 cars.
In the first quarter, Polestar managed to deliver 1,200 units of the Polestar 4 SUV coupe in China. This was the first country to receive the car at the end of 2023. The Polestar 3 is expected to start global deliveries in the second quarter of 2024, while the Polestar 4 will reach customers in Europe and Australia in August. Deliveries in America will come later in the year.
Investors have become less excited about EV companies as sales growth has slowed down, and many of these companies are losing money. Polestar’s financial situation has been challenging, and even Volvo Cars, their financial backer, announced in February that they would stop giving them more money. Instead, they plan to give their stake in Polestar to their shareholders, such as Geely.
We’ll have to wait and see how Polestar performs when they report their fourth-quarter results on April 30 and their first-quarter results on May 23.