STOCKHOLM (FFN) – Swedish electric vehicle manufacturer Polestar reported a slight reduction in its operating loss for the second quarter, just a day after announcing a leadership change, according to Reuters.
Polestar reported an operating loss of $242.3 million USD (€217.95 million EUR) for the second quarter, down from $273.6 million USD in the same period last year. The improvement was attributed to cost reductions.
Despite this progress, the company faces multiple challenges, including delays in launching new models, unmet delivery targets, and weaker-than-expected demand.
Polestar’s revenue dropped to $574.9 million USD from $693.3 million USD a year earlier. This decline was influenced by weaker sales and increased discounts due to a price war initiated by Tesla. The situation was further complicated by U.S. and EU decisions to impose import tariffs on electric vehicles manufactured in China.
Despite these difficulties, the company maintained its forecast for improved revenue in the second half of the year. Polestar has started production of its Polestar 3 SUV in the U.S., after previously manufacturing exclusively in China.
| Indicator | Q2 2023 | Q2 2024 |
|---|---|---|
| Operating Loss (USD) | $273.6M | $242.3M |
| Revenue (USD) | $693.3M | $574.9M |
The leadership change at Polestar is also notable. Thomas Ingenlath, who has served as CEO since the company’s founding in 2017, has been replaced by Michael Lohscheller, former head of the Opel brand.
Polestar encountered significant challenges earlier this year when Volvo, one of the brand’s co-founders, announced it would no longer fund the electric vehicle maker. However, Chinese Geely, the majority shareholder and co-founder of Polestar, stated that it would continue to finance the brand. In August, Polestar secured a $300 million USD loan.
Key Words: Polestar, electric vehicles, operating loss, revenue, Tesla, Volvo, Geely, Polestar 3 SUV
