Officials at EV maker Polestar said that it’s going to take longer than originally forecast for the nascent automaker to be in the black. It also delayed a planned expansion to new companies.
Michael Lohscheller, Polestar CEO, said the company’s growing, just won’t make its goal of being profitable for 2024.
The Swedish startup originally predicted it would be profitable in 2024, but officials revealed today that a variety of factors have combined to make it impossible to finish the year in the black — despite an uptick in EV sales globally.
“We expect 2025 to be the strongest year in Polestar’s history,” said Michael Lohscheller, Polestar CEO. “With Scandinavian design, performance and a premium brand, Polestar has successfully positioned itself in the global automotive market. We have three outstanding cars on the road and a growing, passionate customer base.”
“We are building on the strong Polestar brand with design and performance at its core. But significant changes are needed to make this well-respected progressive brand a successful and viable business. We are speeding up our retail expansion and commercial transformation, whilst adjusting our future model line-up and significantly reducing our cost base. Both in terms of volumes and financials, we expect 2025 to be the strongest year in Polestar’s history.”
New numbers
The 2024 Polestar 2 brought several key updates to EV buyers — but not enough to put the EV maker in the black.
Polestar’s updated business plan targets a compound annual retail sales volume growth of 30% to 35% for 2025 to 2027 — and a positive adjusted EBITDA in 2025.
Gaining commercial and operational momentum, further margin, fixed costs and working capital improvements are expected from 2026 onwards, with a positive free cash flow after investments expected in 2027.
Other notable points include:
- Strong product momentum: Polestar 3 and Polestar 4 represent 56% of order intake in Q4 2024; Polestar 5 launch this year
- Polestar 7, a premium compact SUV, planned to be produced in Europe, strengthening global manufacturing network
- Dealership expansion: 75% increase in retail spaces until 2026, with start of sales in France this year
- Continue to work with Geely, the majority owner of Polestar and Volvo, on securing new equity and debt funding to finance Polestar’s development and strategy implementation
“Geely will continue to support Polestar’s development and strategy implementation, including working with Polestar to secure additional equity and debt funding,” said Daniel Donghui Li, Geely Holding Group CEO and Polestar Board member, in a statement.
“Polestar remains an important global asset for Geely and the new leadership team is taking the right actions to transform it from an iconic brand into a successful global business.”
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