Polestar Delivers 11,900 Cars in Q3, But Profit Is Still a Challenge for Q4 2024

• Polestar delivered 11,900 cars in Q3 2024, with a total of 32,300 for the year, and is shifting to a more active sales model.
• The company expects to turn a profit by the end of 2024 and reach break-even by the end of 2025, despite dealing with new import taxes.
• Polestar’s Polestar 0 project intends to build a fully climate-neutral car by 2030, pushing for more sustainable practices in the auto industry.

Polestar is at a crossroads. In Q3 2024, the company delivered 11,900 vehicles, bringing its total for the year to 32,300. These numbers show Polestar’s resilience, but success isn’t just about the numbers. The Swedish electric vehicle (EV) brand is preparing for major changes in its strategy, navigating an uncertain yet promising path forward.

CEO Michael Lohscheller has made it clear: “Polestar has a great foundation to build upon, with access to the best EV technology, a global manufacturing capability, and strong support from Geely.” This foundation is a lifeline in an industry facing hurdles like new tariffs and shifting market conditions.

Polestar Shifts to Aggressive Sales Strategy

Polestar isn’t just sitting back. Under Lohscheller’s leadership, the company is making a big shift in its approach, which moves from simply showcasing cars to actively selling them. This is a major change. The first markets to adopt this new sales model are already seeing strong order numbers, which is key as Polestar goes head-to-head with big names like Tesla. With the Polestar 3 and Polestar 4 all-electric SUVs now available in the U.S., this more aggressive sales strategy could really make a difference for the brand.

The Polestar 4 recently made its debut in the U.S., just as new import duties are coming into play, which has many EV enthusiasts concerned. With a starting price of $60,000, this all-electric SUV coupe might seem expensive, but it’s a competitive option in the luxury EV market. While these new duties are already pushing prices higher across the board, Polestar remains confident, highlighting that their long-term plan focuses on delivering premium quality and maintaining a strong market position.

Polestar Targets Profit by 2025 Despite Rising Costs and Attractive Leasing Deals

Polestar is focused and working hard to turn a profit. The company expects its revenue in 2024 to be similar to 2023, but there’s reason to be optimistic. Polestar has a target to reach a positive gross profit margin by the fourth quarter of 2024. This is significant. As many EV manufacturers struggle to hit profitability, Polestar is pushing toward cash flow break-even by the end of 2025, even if it sells fewer cars than originally planned. With strong support from Geely and continued talks with its lenders, Polestar is positioning itself for long-term success.

But let’s not sugarcoat it. Polestar, like many others in the automotive industry, is facing headwinds. Import duties are increasing, costs are rising, and the competition is fierce. If you’re in the market for a new EV, these pressures will inevitably trickle down. Tariffs on EV imports have already impacted prices for the Polestar 4 and Polestar 3, making it even more essential to act now if you’re considering a Polestar lease.

Speaking of leases, Polestar is offering attractive deals across its lineup, making it more affordable than ever to get behind the wheel of one of these tech-rich vehicles. For instance, the Polestar 2, which has received rave reviews for its minimalistic design and punchy performance, is available with competitive leasing options starting at $499/month. The Polestar 3, priced from $85,300, is also available with similar leasing deals, ensuring that those who crave a luxury EV experience don’t have to break the bank.

Affordable EVs with a Focus on Sustainability

Polestar’s goals go beyond just selling cars. They’re focused on helping the planet, too. The company’s big plan, called the Polestar 0 project, is positioned to create a climate-neutral car by 2030. And this isn’t just talk. Polestar is taking real steps, pushing its suppliers and the entire car industry to work toward zero emissions. As the world becomes more concerned about the climate crisis, this could be the advantage that sets Polestar apart.

Electrify News contributor, Kristen Bentley, rented a Polestar 2 for a road trip with her family. “The Polestar 2 is an affordable EV with a decent range of 240 miles, a comfortable ride, and unique interior features. I love how Polestar uses recycled materials in the cabin. I also found the Google-based infotainment system incredibly easy to use – especially since I had to figure it out while on the road.” This feeling is shared by many early buyers, who are attracted not just to Polestar’s design and performance, but also to the values the brand stands for.

The future looks promising, but there are still challenges ahead. Polestar will hold a live webcast on January 16, 2025, where they’ll give a detailed update on their business and strategy. As 2025 approaches, the company is ready to explain how they’ll tackle current market conditions while staying committed to their mission of creating sustainable, high-performance electric vehicles.

SOURCE | IMAGES: POLESTAR, ELECTRIFY EXPO

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