Polestar, Volvo’s Electric Vehicle Brand, Announces $1 Billion Revenue in H1 2022, Adds 6 New Global Markets – FutureCar.com
Author: Eric Walz
The Polestar 2 electric coupe.
Electric performance brand Polestar, which is jointly operated by Sweden’s Volvo Cars and its parent company Chinese automaker Zhejiang Geely Holding (“Geely”), got off to a strong start to the first half of 2022 after a strong first quarter with sustained sales of the Polestar 2.
In the first four months of 2022, customer reservations also more than tripled to nearly 23,000 vehicles compared to the same period in 2021. Polestar delivered 21,185 vehicles in the first six months of 2022, compared to only 9,510 for the same period in 2021.
Polestar still expects to hit its annual target of 50,000 cars. Vehicle deliveries will be weighted toward the fourth quarter, following disruptions caused by COVID-19 shutdowns in China.
Polestar also began delivering Polestar 2 electric vehicles to rental car company Hertz in June as part of a deal to purchase 65,000 electric cars.
As a result, Polestar’s gross profit jumped 49%, from $35.8 million to $53.4 million.
Polestar announced that its revenue increased by $506.5 million to $1.04 billion in the first half of the year and that the company nearly doubled its sales volume thanks to continued business expansion. in all markets. The rise in revenue represents a 95% year-over-year increase.
“We made significant progress in the first half of 2022 by doubling our revenues and volumes, and successfully listing on the Nasdaq New York Stock Exchange,” said Thomas Ingenlath, CEO of Polestar. “In addition, we have maintained strong momentum in our global order intake and expect to deliver 50,000 cars to our customers this year, in line with our 2022 sales forecast. With several game-changing cars to come, Polestar is ready for a period of rapid growth. “
Polestar continues to open additional outlets called “Polestar Spaces”, where customers can view the Polestar 2 in person and speak with product experts to learn more about the vehicle and its electric powertrain technology.
Polestar has added six new markets since the start of the year, including the United Arab Emirates, Kuwait, Hong Kong, Ireland, Spain and Portugal. Polestar now has 125 points of sale and 934 service points in its markets.
Polestar says its cash and cash equivalents were $1.38 billion as of June 30, 2022, up more than 80% since the end of 2021 following Polestar’s IPO in June after the company has completed its previously announced business combination with Gores Guggenheim, a special company. purpose-built acquisition company (“SPAC”) formed by affiliates of The Gores Group and Guggenheim Capital, LLC.
Polestar shares began trading on the Nasdaq under the new symbol “PSNY” on June 24, 2022.
Polestar’s operating loss rose 143% to $520.5 million as the company continues to invest in business expansion. This amount includes a one-time listing fee of $372.3 million incurred after SPAC’s merger with Gores Guggenheim, Inc.
To help meet Polestar’s working capital needs, the company entered into two new 12-month unsecured working capital loan agreements with two banks in China, totaling approximately US$200 million. At the end of August, Polestar entered into an additional credit facility with one of these banks for $145 million.
Polestar is emerging as a rival to electric vehicle segment leader Tesla with its Polestar 2 EV. The company will launch two new electric SUVs by 2024. The first will be the Polestar 3, a full-size electric SUV, which will be officially unveiled in October. Production of the Polestar 3 is scheduled for early 2023. The Polestar 3 will be built in the United States and at Volvo’s assembly plant in Ridgeville, South Carolina.
The electric SUV is expected to be a strong competitor to Tesla’s Model Y and Ford’s Mustang Mach-E in the premium EV segment. The Polestar 3 will also be a software-based electric vehicle capable of receiving regular over-the-air software updates, which was launched by Tesla.
The Polestar 3 will also feature connectivity features based on Android Automotive OS, as well as high-end safety-focused self-driving features, the company said. It will offer autonomous highway driving capability powered by a centralized NVIDIA DRIVE processor with integrated LiDAR from Polestar technology partner Luminar. It will be one of the first electric vehicles in the world to be fitted with lidar during production to support autonomous driving functions.
After the Polestar 3, the Polestar 4 will be launched in 2023. It will be a smaller electric SUV coupe.
In 2024, the company will launch the Polestar 5 performance sedan based on Polestar’s Precept concept. The flagship electric sedan will feature a dual electric motor configuration and an 800-volt system architecture. Polestar is aiming for a combined 884 horsepower and 664 pound-feet of torque for the Polestar 5.
Two weeks ago, Polestar confirmed its intention to put its electric roadster concept into production. The production version of the battery-powered sports car is expected to launch in 2026 as the “Polestar 6”.
The EV concept was first unveiled in Los Angeles in March as the Polestar O2 and was intended to showcase Polestar’s vision for future sports cars. At the time, Polestar said the O2 hardtop convertible “redefines sporty roadsters for the electric age”.
Polestar was able to take the classic look of iconic roadsters of the past and integrate the design elements into a modern all-electric roadster.
Polestar will share its third quarter 2022 financial results on November 11, 2022.