Polestar, the Swedish electric vehicle manufacturer backed by China’s Geely, has announced a strategic review of its operations following a 14% drop in third-quarter deliveries. The company reported handing over 11,900 vehicles during the quarter, down from 13,900 a year ago, amid weakening demand for electric vehicles due to high interest rates and rising consumer interest in hybrid alternatives. Shares of Polestar dropped more than 3% following the news.
In his first public statement since taking over on October 1, new CEO Michael Lohscheller outlined the company’s focus moving forward. “A key to our future success will be the development of our commercial capabilities: going from showing to actively selling cars,” Lohscheller said. He added that markets where this active sales approach had already been implemented were “showing solid order intake.” The full details of the review will be shared on January 16, alongside Polestar’s third-quarter financial results.
Despite current challenges, including the imposition of U.S. and European tariffs on Chinese imports, Polestar reaffirmed its goal of achieving break-even cash flow by the end of 2024. Lohscheller emphasized that the company is working on cost reductions and strengthening its supplier relationships to manage production costs more effectively. “We are engaged in constructive dialogue with our lenders,” the company noted, as it seeks additional capital and plans to shift more of its production outside of China.
Polestar’s financial situation remains under pressure, but its strategy of cost control and active market engagement reflects a determined effort to navigate the competitive EV landscape. “I think that’s encouraging because it alludes to the fact that the company is being strategic about cost-cutting and finding some synergies around pricing and cost and the production process,” said Andres Sheppard, senior equity analyst at Cantor Fitzgerald.
