The electric car manufacturer Polestar reports an increased loss for the first quarter of the year. The company's revenue also decreased, but delivery volumes have recovered during the second quarter.
The Gothenburg-based car manufacturer has struggled with several challenges recently, including write-downs and delayed annual reports.
Now, when reporting the first quarter results, the operating loss is significantly higher, $231.7 million, compared to the same quarter last year ($219.9 million).
More cars sold
Revenue has simultaneously decreased by 36 percent to $345.3 million.
In the first quarter, the delivery volume amounted to 7,200 electric cars. However, the volume has since increased to 13,000 cars in the second quarter, according to Polestar.
These figures come after Polestar reported an operating loss of $1.46 billion (corresponding to 15.5 billion kronor) for the full year 2023 just last week.
However, CEO Thomas Ingenlath expects better results for the rest of 2024 and onwards:
"We expect a significant revenue improvement in the second quarter," he writes in the interim report.
He also flags new measures to improve profitability, aiming for a "cash flow break-even result by the end of 2025" and plans to provide "an updated guidance later this year".
Lost 93 percent of market value
The background is that the production of the Polestar 3 model is expected to start at the end of the summer, and the next model, Polestar 5, is planned to begin production in the second half of 2025.
However, the company has had a tough ride on the stock market in recent years. Since the spin-off from Volvo Cars in late June 2022, the company has lost 93 percent of its market value. Just since the beginning of the year, the decline is nearly 60 percent.
Volvo Cars currently owns 18 percent of Polestar, down from over 48 percent at the beginning of the year.
Correction: An earlier version incorrectly stated the delivery volume for the second quarter of the year.
