EV firm Polestar expects positive gross margins despite slow demand
Delhi Delhi: Polestar said on Friday it expects to achieve a positive gross profit margin in the fourth quarter, while its electric vehicle deliveries fell 14 percent in the third quarter.Shares of the Swedish company fell 3.8 percent in premarket trading.Polestar, owned by China’s Geely, has been struggling with weak demand for its vehicles due to factors such as high interest rates, which have led consumers to turn to cheaper hybrid cars.Polestar recently carried out a major reshuffle in which it replaced its CEO, design chief and board chairman, and appointed a new CFO.
New CEO Michael Lochsler said on Friday in his first public statement since taking charge on October 1 that he sees an excellent basis for moving forward and is reviewing its strategy and operations.The company said it will provide updates on its full third-quarter financial statements as well as business and strategy on January 16.
Polestar said it expects revenue for the full year to be about the same as last year due to tough market conditions and import tariffs impacting the automotive industry. In 2023, the company reported revenue of $2.38 billion.Polestar also reaffirmed its goal of achieving break-even cash flow by the end of next year, but at lower volumes than previously targeted.
The company delivered 11,900 vehicles in the third quarter, compared with 13,900 a year earlier. The imposition of US and European tariffs on Chinese imports has put pressure on Polestar to expand its production base in the United States and move away from China, where it currently makes most of its vehicles.
