While other EV automakers are seeing their net losses balloon to multiple billions of dollars, Polestar announced that the company had cut its annual net losses in half for 2022. The company reported an increase of 84 per cent in revenue or roughly $2.5 billion last year.
The net losses for the company fell to $466 million from almost $1 billion in 2021. At the same time, its operating loss dropped to $914 million.
Although the company is still not profitable, the Swedish automaker’s future looks bright. However, CFO Johan Malmqvist did not comment on when Polestar expects to break even or profit. However, he did say:
We remain confident in the fundamentals of our business, so we have the levers and the building blocks to get to breakeven.
Polestar also aims to increase deliveries by nearly 60 per cent in 2023, which should help decrease annual losses even more. But the company does expect the gross margin to keep in line with the 4.9 per cent that the company reported for 2022.
Most of the increased deliveries will be the updated Polestar 2, as the Polestar 3 and Polestar 4 will not peak production until 2024. Unlike other EV start-ups, Polestar appears to be in a favourable position and will look to continue to grow in the coming years.