Polestar’s Electric Dreams Get a Boost
Fourth-Quarter Sales Surge Amidst Industry Challenges
Despite the electric vehicle (EV) sector’s struggles, Polestar has reported a significant rise in fourth-quarter retail sales and order intake, alleviating investor concerns about demand for its premium models. The Swedish EV maker saw retail sales climb to 12,256, up from 11,640, and a substantial 37% increase in order intake compared to the same period last year.
A Shift in Reporting Strategy
In a move to align itself with industry standards, Polestar has announced a change in how it reports sales. From now on, the company will focus on cars delivered to final customers, rather than invoiced sales. This shift is expected to provide a more accurate representation of the company’s performance.
Weathering the Storm
Polestar’s improved results come as a surprise, given the current market conditions. The EV sector is facing a perfect storm of challenges, including a slowdown in demand, intense price competition sparked by Tesla, and tariffs imposed by the EU and U.S. on China-produced cars. Moreover, Polestar has been dealing with operational issues, such as delays in financial reporting and cost management struggles.
A New Era of Leadership
In an effort to turn the business around, Polestar has undergone significant changes in the past year. The company has replaced its CEO, head of design, chair of the board, and appointed a new CFO. Under the leadership of Michael Lohscheller, who took the reins in October, Polestar is undergoing a strategic review. Lohscheller is set to present a business and strategy update on January 16, along with the company’s third-quarter results.
A Luxury EV Maker’s Ambitions
Polestar, which positions itself as a luxury electric automaker, aims to achieve break-even cash flow by the end of this year. The company’s improved sales and order intake are a testament to the positive impact of its commercial operations overhaul. As Lohscheller noted, “The changes being made to our commercial operations are clearly having a positive impact.”
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