March 6, 2023: Swedish electric vehicle creator Polestar cut its annual net losses in half last year while earnings increased, and it attempted to set itself apart from other EV startups.
On Thursday, the company reported an 84% increase in earnings for 2022 to almost $2.5 billion, which exceeds a 50,000-vehicle delivery target. Its net loss for the year decreased to $466 million from over $1 billion in 2021. It’s adjusted which operates loss narrowed by 8% to $914 million, while its adjusted revenue before interest and taxes, depreciation and amortization increased by 4.8% to $759 million.
CEO Thomas Ingenlath described the firm’s 2022 performance as the groundwork for a “phase” in the automaker’s increase as it aims to increase deliveries by almost 60% to nearly 80,000 cars.
The majority of that surge will come from an elevated Polestar 2 EV, according to Ingenlath. The firm is releasing two new EVs this year – Polestar 3 and Polestar 4 anticipated to hit their production strides in 2024.
“It’s which excites year for us in terms of changing the firm to not only having one product but three at the time-end,” Ingenlath said during a video interview.
For 2023, Polestar expects gross margin to be “broadly in line” with the 4.9% it stated for 2022, “with volume and product mix which supported margin progression in the year.”
The firm surged its cash position to $973.9 million at to end of last year, up 29% from a year earlier. CFO Johan Malmqvist said the company continues exploring potential equity or debt offerings to increase additional capital to fund operations and business growth.
Malmqvist refused to state when the company expects to break even or turn a profit, stating, “We remain confident in the rules of our firm, so we have the levers and the construction blocks to reach breakeven.”
Polestar’s relatively positive results come following other EV startups, such as Lucid, Nikola, and Rivian reported ongoing problems with supply chains and production, forcing them to miss production or sales aims.
Polestar is a mixed venture between Sweden’s Volvo Cars and its parent company, the Chinese name Geely. Polestar went public through a merger with a particular purpose acquisition firm in June.
Since going public, Polestar shares are off by regarding 49%. The stock decreased over 5% Wednesday, closing at $5.05 a share.