Stockholm — Polestar reported a 40% decline in first-quarter deliveries, according to the Swedish electric vehicle (EV) manufacturer on Thursday, reflecting the challenges faced by the sector due to slowing demand.
While companies in the automotive industry are banking on future demand for EVs, the growth in sales has decelerated. Investment in production capacity and technology development has outpaced demand, putting pressure on companies to reduce costs.
Polestar disclosed that it delivered 7,200 vehicles in the first quarter, a 40% decrease from the 12,076 delivered in the same period last year.
Polestar’s CEO Thomas Ingenlath mentioned in a statement that the increase in deliveries of the Polestar 3 and Polestar 4 luxury SUVs will contribute to revenue in the latter part of the year.
“These two vehicles will serve as a foundation for a robust revenue and margin growth in the second half of the year, supporting our 2025 goals,” Ingenlath stated.
The company has a target to deliver between 155,000 to 165,000 cars in 2025.
Polestar highlighted that it had delivered 1,200 units of the Polestar 4 SUV coupe in China during the first quarter, making it the first country to receive the car by the end of 2023.
Global deliveries of the Polestar 3 are scheduled to begin in the second quarter of 2024, while deliveries of the Polestar 4 will commence for customers in Europe and Australia in August, with deliveries in America expected later in the year.
Investor interest in EV manufacturers has waned due to the slowdown in sales growth and the accumulation of financial losses, particularly impacting start-ups like Polestar.
Volvo Cars, a financial backer of Polestar, announced in February that it would halt further funding for the company due to its struggle to meet targets. Volvo Cars will transfer most of its stake to its shareholders, including Geely.
The company plans to unveil its postponed fourth-quarter results on April 30 and first-quarter results on May 23.
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