Polestar sales fall by 40 per cent

Polestar's electric car sales fell significantly in the first quarter of 2024. The carmaker delivered around 7,200 vehicles in the first three months of the year, around 40 per cent less than in Q1/2023.

Image: Polestar

The sales reflect the ongoing model transition at Polestar. The company is evolving from a manufacturer with just one model, the Polestar 2, to a more extensive portfolio, with deliveries of the Polestar 4 already underway and the upcoming premiere of the Polestar 3, production of which has now started. Although the Polestar 2 has been significantly improved for the 2024 model year (here is our driving report), some potential buyers may currently hesitate whether to choose the refreshed but outdated Polestar 2 or to wait for the slightly larger Polestar 4 – or to opt for an electric saloon from the competition.

According to the press release, 1,200 of the 7,200 vehicles delivered in Q1 were Polestar 4s. All of them were delivered in China, as the model will not launch in Europe until later this year. However, Polestar will likely soon reverse the trend of four consecutive quarters of falling sales. The 7,200 units were the weakest quarterly result since Q3/2022. Polestar has only been obliged to publish quarterly figures since its IPO. Before that, the company only published figures sporadically.

For comparison: In Q1 2023, Polestar delivered 12,076 vehicles, all of which were Polestar 2s at the time. However, the manufacturer could not match the result from the record quarter of Q4 2022 with 21,000 units throughout 2023 – and missed its annual target of 60,000 units with around 54,600 deliveries. Polestar describes 2024 as a “transitional year,” as two new models will launch on the market. Expectations are high: the company aims for 155,000 to 165,000 deliveries in 2025.

In addition to the change in the model portfolio, the first quarter was also very important for Polestar at a corporate level. Firstly, the company secured new external financing totalling 950 million US dollars from a consortium of international banks in February, providing the necessary funds to complete the next development phase. The ownership structure of Polestar was also clarified, with Geely Holdings becoming a new major shareholder with around 24 per cent and Volvo Cars retaining a strategic stake of 18 per cent.

“2024 is a transitional year, as we move from being a one-car brand during the first half of the year, to ramping up deliveries of our two luxury SUVs during the second half,” says Polestar CEO Thomas Ingenlath. “The very positive reviews resulting from the global media test drives of Polestar 3 and Polestar 4 show the progress that our brand is making and confirm our dynamic, global strategy. These two cars will provide the basis for a strong revenue and margin progression during the second half of the year, supporting our 2025 targets.”

reuters.com, polestar.com


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