Polestar, the electric car maker, has had to adjust its sails in the rough seas of today’s market. The company aimed high with a goal of 80,000 cars delivered this year, but now they’re steering towards a more modest 60,000. It’s a sign of the times; even with a jump in sales and a boost in revenue, they can’t escape the currents of a weaker global demand, especially in the electric vehicle (EV) sector.

The company is trying to keep its profit margins afloat as the costs go higher

Despite the headwinds, there’s a silver lining. Polestar’s recent sales are up by half compared to last year, and while they’re now aiming for fewer deliveries, they’ve still managed to sell over 40,000 cars in nine months. That’s no small feat in a world where wallets are tightening.

Polestar 4

The challenge doesn’t end with sales numbers. Profits are also taking a hit, with expectations halved from 4% to 2%. Price hikes haven’t been enough to keep the profit margins afloat as the cost of doing business in the EV industry climbs.

On the financial front, Polestar isn’t running on empty. They’ve got a decent stash of cash and fresh loans from Volvo Cars and an affiliate of Geely Holding. This is reassuring for those keeping an eye on the company’s vitality.

Looking ahead, Polestar isn’t just cruising along; they’re planning an acceleration. A new model is set to roll out in China soon, with customer deliveries by year’s end. And by 2026, they’re looking to expand their lineup to five models. That’s ambition with a capital ‘A’.

Even with these plans, Polestar acknowledges the road to profitability is a marathon, not a sprint, with a break-even point projected for 2025. It’s a bumpy ride for the EV industry, but Polestar’s journey is one to watch. The company is carving a niche for itself in the industry, and it will be interesting to see how other EV makers rise up.

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