Polestar has posted its second quarter results, and despite a notable increase in vehicle deliveries, the company faces financial hurdles that it is working to overcome as it continues its expansion into new markets.
The Swedish automaker reported a substantial 82% growth in vehicle deliveries in Q2 2024 compared to the previous quarter, with 13,150 cars delivered. Polestar attributed this growth to their expanding presence in key markets, including the United States, Sweden, Norway, and Germany.
Despite the strong growth in deliveries, Polestar’s operating loss has increased, and its revenue for the first half of 2024 fell by 26% to $918 million, primarily due to reduced vehicle sales and the absence of a major contract with Hertz. The net loss for the first half of the year rose significantly, reaching $541 million.
Polestar also announced it has secured up to $300 million in external funding, which it plans to use for general corporate purposes. Additionally, it has taken measures to improve inventory turnover, reducing the number of cars in stock by approximately 30% compared to Q4 2023.
The Q2 results follow just one day after Polestar announced the appointment of Michael Lohscheller as its new CEO, effective October 1, 2024. Lohscheller, who brings his previous experience from Opel, VinFast, and Nikola to the table, is expected to guide Polestar through its next phase of growth.
Polestar remains optimistic about the second half of 2024, particularly the fourth quarter, as it expects sales of its premium SUVs, the Polestar 3 and Polestar 4, to gain traction.
