Polestar 2 EV main revenue driver; profit offset by investments
Polestar presents its financial results for the first six months of 2022. Volvo-born electric car brand reports nearly doubling its revenue, mainly driven by sales of the Polestar 2, the company’s first purely electric vehicle. Other segments, however, required investment.
Polestar revenue increased by $506.5 million, or 95%, thanks to these EV sales paired with continued commercial expansion across markets. Selling, general, and administrative expenses cost Polestar $167.9 million, or 60% more than in previous years. The mix also drove gross profit to grow $17.6 million, or 49%, partially offset by product and market mix.
However, operating loss increased 143 per cent to $885.2 million in the first half of 2022, which Polestar says was primarily due to investments in business expansion and one-time costs related to its IPO with Gores Guggenheim completed in late June. The SPAC merger incurred a one-time listing charge of $372.3 million based on shares.
The company also reports increased spending on future vehicles and battery electric technologies, including the Polestar Precept and the P10 powertrain. At the same time, research and development expenses decreased by $8.1 million, or 8%, due to lower amortisation related to Polestar 1.
Thomas Ingenlath, Polestar CEO, comments: “We made important progress in the first half of 2022 as we doubled revenues and volume and successfully listed on the Nasdaq stock exchange in New York. In addition, we maintained strong momentum in our global order take and expect to deliver 50,000 cars to our customers this year, meeting our 2022 sales guidance.”
The Polestar boss referred to the company’s reduced target of 50,000 plug-in cars throughout 2022. Polestar delivered 21,185 vehicles in the first six months of the year, 123% more than in the same period last year. The 50,000 units also pose a significant increase from 2021, when Polestar targeted and indeed delivered 29,000 vehicles worldwide.
These numbers are almost certain to increase. Polestar currently holds an agreement with Hertz. The rental car company reportedly expects delivery of 65,000 electric cars, and deliveries have just begun.
The order also includes future Polestar models such as the Polestar 3, the company’s all-electric SUV, which will debut this October.
The company also confirmed the Polestar O2 Concept or Polestar 6 in a series version by 2026. Including the O2 Concept and Polestar 3, Polestar plans to launch four new all-electric vehicles within five years: the Polestar 4 in 2023 and Polestar 5, based on the Precept concept car, in 2024.