Polestar, the electric car brand, has revealed its financial performance for the first half of 2023, showcasing impressive sales growth. The company reported a year-on-year sales increase of 18 percent from January to June, amounting to approximately $1.2 billion (€1.11 billion).
However, despite the promising sales figures, Polestar posted a net loss of approximately $313 million (€288.5 million) for the first half of the year. This marks an improvement from the $503 million (€463.6 million) loss reported during the same period in the previous year. Notably, the second quarter alone contributed to an operating loss of $274 million (€227.7 million).
The surge in revenue during the second quarter, totaling $685 million (€631 million euros), was a key driver behind the positive sales trend, representing a 16 percent increase compared to the second quarter of 2022. Polestar attributes this revenue boost to factors such as increased shipments and price hikes, though these gains were partially offset by challenges in distribution channels, product mix, and higher discounts.
The company's report also highlighted escalated contract manufacturing and procurement costs for semiconductors and batteries as contributing to the financial results.
Polestar achieved a total delivery of 27,841 electric cars in the first half of 2023, marking a notable 31 percent increase from the same period in 2022. Of these, 15,800 electric cars were delivered in the second quarter.
Looking ahead, Polestar remains committed to its annual target of delivering 60,000 to 70,000 vehicles in 2023, but this will necessitate a significant increase in deliveries during the second half of the year, surpassing the 27,900 units delivered in the first half.
Notably, due to a delay in the Polestar 3, initially unveiled in 2022, with production set to commence in the first quarter of 2024, the company will primarily rely on the Polestar 2 to meet its 2023 targets. Revised 2024 models of the mid-size sedan have recently begun shipping.
Polestar's performance in H1 2023 reflects both its impressive sales growth and the unique challenges faced by the electric car industry as it grapples with supply chain disruptions and increased costs for critical components.