Motor Trader The award-winning and longest running UK magazine for car retailing professionals. Your first stop for News, Jobs and Reports for the motor industry.
To meet its target of cash-flow breakeven towards the end of 2025, Polestar will adjust its business plan.
Adapting its business plan will allow the manufacturer to mitigate the impact of import duties and pricing pressure in global EV markets, including China.
Thomas Ingenlath, Polestar CEO, said: “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.”
For the three months ended March 31, 2024, revenue decreased by 36% due to lower global vehicle sales, higher discounts driven by inventory management actions and revenue recognition on sales of cars to China JV.
Polestar reported 80% growth in global deliveries for Q2. Sales momentum had a positive impact on inventory levels and cash flow.
Ingenlath 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.
“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.
Polestar is widening its retail footprint 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 and other key markets across Europe will follow suit in the second half of the year.