Polestar, the Sino-Swedish electric vehicle startup, is facing increasing challenges as its Polestar 3 and 4 models, along with a new active sales strategy, failed to significantly boost sales in the third quarter of 2024. The company delivered approximately 11,900 vehicles in Q3, marking the fourth consecutive quarter of year-on-year declines. Total deliveries for the first nine months of 2024 reached just over 32,000 units, down from nearly 42,000 in the same period last year.
Polestar acknowledged that while some markets have shown positive results under the new sales model, sales growth overall has been slower than expected. “The first markets to implement active sales model [are] showing solid order intake,” the company said. However, concerns remain as Polestar admitted that 2025 sales are also likely to disappoint. Additionally, the firm disclosed that it is in “constructive dialogue” with lenders over its loan covenants, signaling potential financial strain.
In a move that raised further investor concerns, Polestar announced it would delay the release of full Q3 financial data until January 2025, opting instead to release “select Q3 financial and operational highlights” at that time. The company explained that the reduced reporting would allow it to focus on “ongoing business and strategy review” while preparing for its 2024 annual report.
Despite these challenges, CEO Michael Lohscheller expressed optimism, saying, “Polestar has a great foundation to build upon, with access to the best EV technology, a global manufacturing capability and strong support from Geely.” He emphasized the importance of transitioning to a more active sales approach, adding that “going from showing to actively selling cars” will be crucial to the company’s future success. However, Polestar now expects lower sales volumes in 2025 than previously forecast, amid continued market headwinds and delays in ramping up production outside of China.
