Polestar has reported a 17% drop in global deliveries for the third quarter of 2024. In the three month period from July to September, Polestar saw 11,900 vehicles delivered, falling short compared to both the previous quarter and the same period in 2023.
From January to September, Polestar has delivered 32,300 vehicles, down from 41,844 by this time last year, marking a significant decline of 22.7%. These lower figures are despite the Swedish automaker expanding its lineup with new models such as the Polestar 3 and Polestar 4.
The newly appointed CEO, Michael Lohscheller, is already taking action to address these challenges. In his first public statement since taking the helm on October 1, Lohscheller outlined plans to review the company’s current strategy and operations, saying the company’s shift to a more active sales model to drive orders has already shown promising results in initial markets.
“Adopting a more active sales model is already supporting our ambitions, as the first markets to implement it are showing solid order intake,” Lohscheller said.
Polestar’s struggles come as newly imposed import duties that impact the cost of vehicles, especially those manufactured in China, have taken effect in multiple markets around the world, including Canada. This presents a particular challenge for Polestar, as the majority of its production remains based in China, except for the Polestar 3, which is also manufactured in the US.
Despite the setbacks in sales, Polestar remains optimistic about its financial future. The company expects revenue for 2024 to be on par with 2023 and anticipates achieving a positive gross profit margin by the fourth quarter of this year. Additionally, Polestar reaffirms its goal of reaching cash flow break-even by the end of 2025, albeit at lower volumes than previously projected.
