Swedish electric vehicle (EV) maker Polestar reported a 40% decrease in first-quarter deliveries, reflecting the broader struggles of the sector with slowing demand, the company said on Thursday.
While automakers and suppliers continue to invest in capacity and technology development for EVs, sales growth has slowed, putting pressure on companies to cut costs.
Polestar delivered 7,200 vehicles in the first quarter, down from 12,076 in the same period a year earlier.
CEO Thomas Ingenlath noted that a ramp-up in deliveries of its Polestar 3 and Polestar 4 luxury SUVs will contribute to revenue in the latter part of the year. “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,” Ingenlath said.
Polestar aims to deliver 155,000-165,000 cars in 2025. In the first quarter, the company delivered 1,200 units of the Polestar 4 SUV coupe in China, which was the first country to receive the car at the end of 2023. Global deliveries of the Polestar 3 are set to begin in the second quarter of 2024, while deliveries of the Polestar 4 in Europe and Australia are expected in August, with deliveries in America anticipated later in the year.
However, investors’ enthusiasm for EV makers has waned as sales growth has slowed and financial losses have mounted, particularly impacting start-ups like Polestar.
Volvo Cars announced in February that it would stop further funding of Polestar, which has struggled to meet targets, and hand over most of its stake to its shareholders, such as Geely.
