Polestar EV Sales Are Down 40% Again In Q1 2024

The company increased Polestar 4 deliveries in China, but the Polestar 2 was down 50% year-over-year.

Polestar 4

Mark Kane

By: Mark Kane

Apr 12, 2024 at 9:00am ET

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Polestar announced that its global electric car deliveries during the first quarter of 2024 amounted to approximately 7,200 units.

The volume was down roughly 40% year-over-year (similar to in Q4 2023) and it seems to be the weakest quarter in a long time.

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Polestar EV lineup

Polestar's main electric model is the Polestar 2, although recently the company launched the all-new Polestar 4 model. In mid-2024, the company intends to launch the Polestar 3.

The number of approximately 7,200 cars includes 1,200 Polestar 4 sold in China (production started in November), which leaves about 6,000 for the Polestar 2 model. Considering that in Q1 2023, Polestar 2 sales exceeded 12,000, it's now 50% down year-over-year.

Such a big drop in sales volume is worrying. The company explains that its focus is on revenues and margins rather than volume. The year 2024 is described by Polestar as a transitional year toward higher-margin EV sales (Polestar 3, Polestar 4, and Polestar 5).

Thomas Ingenlath, Polestar CEO, comments: "2024 is a transitional year, as we move from being a one-car brand during the first half of the year, to ramping up deliveries of our two luxury SUVs during the second half. The very positive reviews resulting from the global media test drives of Polestar 3 and Polestar 4 show the progress that our brand is making and confirm our dynamic, global strategy. These two cars will provide the basis for a strong revenue and margin progression during the second half of the year, supporting our 2025 targets."

Polestar BEV sales in Q1'2024 (YOY change):

Polestar 2: about 6,000 (down 50%)
Polestar 4: about 1,200 (new)
Total deliveries: approximately 7,200 (down 40%)

Polestar Electric Car Sales - Q1 2024

** some data estimated*

For reference, in 2023, Polestar delivered roughly 54,600 electric cars to customers, 6% more than in 2022.

Polestar BEV sales in Q1-Q4'2023 (YOY change):

Polestar 2: about 53,720 (up 4%)
Polestar 4: about 880 (new)
Total deliveries: approximately 54,600 (up 6%)

As we wrote previously, the results were disappointing, as the company initially planned to sell 80,000 electric cars in 2023, and later updated the guidance to 60,000-70,000, which also was not achieved.

In 2022, Polestar sold some 51,500 electric cars (up nearly 80% year-over-year). At the time, it was noticeably less than the 65,000 units of the original target (lowered by 15,000 due to supply constraints). The year 2023 was the second one with sales below target.

We don't know what the year 2024 might bring for Polestar. The Polestar 4 entered production in China (where it's already sold). Its market launch in the U.S. is expected in Q4 2024.

The Polestar 3 also entered production in Chengdu, China. Deliveries in the U.S. are planned to begin in the second quarter of 2024. The Polestar 3 will enter local production in South Carolina, U.S. this summer and will be offered at a more attractive price point than initially anticipated.

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Comments

In one of its presentations, Polestar says that its global EV sales target for 2025 is 155,000-165,000. This number will include four models: Polestar 2, Polestar 3, Polestar 4, and Polestar 5.

Polestar complete product porfolio to 2024

Other than that, Polestar mentioned "future-oriented strategic developments":

"Polestar successfully secured USD 950 million in new, external funding from a consortium of international banks in February, providing the funds needed to complete the next phase of its development. "
"Polestar’s ownership structure has been clarified, with Geely Holdings becoming a major new shareholder, with approximately 24% and Volvo Cars retaining a strategic 18% stake. Furthermore, the Company will welcome new shareholders and see its free float increase to approximately 18%."

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