Polestar Trims 2023 Delivery Forecast, Cuts Profit Margins Amid Economic Uncertainty, Plans New EV Launches

Despite Slashing 2023 Delivery and Profit Predictions, Swedish EV Maker Eyes Launch of New Models Including SUV Coupe to Bolster Falling Revenue Amid Economic Uncertainties

• Despite a year-over-year growth of 51%, Polestar trimmed its 2023 vehicle delivery target to 60,000, down from initial expectations of 80,000 units; this may impact the gross profit margin, now expected to be around 2%, down from the original 4% forecast.
• In light of the lower delivery target, Polestar is cutting costs to improve efficiency, securing an additional $450 million in loans from its top two investors, Volvo and Geely, while sitting on cash and equivalents of $951.1 million as of September end.
• Polestar is looking to bolster falling revenues by launching new EV models. The company’s first electric SUV coupe, the Polestar 4, commences production next week, with deliveries to customers expected the following month.
• The Polestar 3 electric SUV, which has completed hot weather testing in the United Arab Emirates, is on track to start production in China in early 2024 and in the US over the summer. The vehicle is specifically tailored for the US market, starting at $83,900 with up to a 300 mile range.
• Beyond 2023, Polestar aims to increase volume and profitability. By mid-decade, it hopes to deliver 155,000-165,000 vehicles yearly and achieve gross profit margins in the high teens, with new vehicle offerings and operational measures designed to buoy profitability.

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