Volvo's Electric Vehicle Brand Polestar Reports $1 Billion in Revenue in the First Half of 2022, Adds 6 New Global Markets
Electric-performances brand Polestar, which is jointly operated by Sweden's Volvo Cars and its parent company Chinese automaker Zhejiang Geely Holding ("Geely"), is off to a strong start for the first half of 2022 following a strong Q1 with brisk sales of the Polestar 2.
In the first four months of 2022, customer reservations also more than tripled to nearly 23,000 vehicles compared to the same period in 2021. Polestar delivered 21,185 vehicles in the first six months of 2022, compared to just 9,510 for the same period in 2021.
Polestar still expects to deliver on its full-year target of 50,000 cars. Vehicle deliveries will be weighted towards the fourth quarter, following disruptions from COVID-19 shutdowns in China.
Polestar also began delivering Polestar 2 EVs to rental car company Hertz in June as part of a purchase agreement for 65,000 electric cars.
As a result, Polestar's gross profit jumped by 49% from $35.8 million to $53.4 million.
Polestar announced that its revenue increased by $506.5 million to $1.04 billion in the first half of the year and the company nearly doubled its sales volume with continued commercial expansion across markets. The jump in revenue represents a 95% increase year-over-year.
"We made important progress in the first half of 2022 as we doubled revenues and volume, and successfully listed on the Nasdaq stock exchange in New York," said Thomas Ingenlath, Polestar CEO. "In addition, we maintained strong momentum in our global order take and expect to deliver 50,000 cars to our customers this year, meeting our 2022 sales guidance. With several ground-breaking cars to come, Polestar is poised for a period of rapid growth."
Polestar continues to open more retail locations called "Polestar Spaces", where customers can go and see the Polestar 2 in-person and speak with product experts to learn more about the vehicle and its electric powertrain technology.
Polestar added six new markets since the start of the year, including United Arab Emirates, Kuwait, Hong Kong, Ireland, Spain and Portugal. Polestar now has 125 retail locations and 934 service points across its markets.
Polestar says its has cash and cash equivalents of USD 1.38 billion as of June 30, 2022, which is more than 80% since the end of 2021 following Polestar's IPO in June after the company completed its previously announced business combination with Gores Guggenheim, a special purpose acquisition company ("SPAC") formed by affiliates of The Gores Group and Guggenheim Capital, LLC.
Shares of Polestar began trading on the Nasdaq under the new ticker symbol "PSNY" on June 24, 2022.
Polestar's operating loss increased by 143% to $520.5 million as the company continues to invest in the commercial expansion of its business. This amount includes a one-time share-based listing charge of $372.3 million incurred after the SPAC merger with Gores Guggenheim, Inc.
To help support Polestar's working capital needs, the company entered into two new 12-month unsecured working capital loan agreements with two banks in China, totalling approximately US$200 million. In late August, Polestar entered into an additional credit facility with one of those banks for $145 million.
Polestar is emerging as a rival to electric vehicle segment leader Tesla with its Polestar 2 EV. The company will introduce two new electric SUVs by 2024. The first will be the Polestar 3, a full-size electric SUV, that will be officially unveiled in October. Production of the Polestar 3 is slated for early 2023. The Polestar 3 will be built in the U.S. and Volvo's assembly plant in Ridgeville, South Carolina.
The electric SUV is expected to be a strong competitor to Tesla's Model Y and Ford's Mustang Mach-E in the premium electric vehicle segment. The Polestar 3 will also be a software-based EV capable of receiving regular over-the-air software updates, which was pioneered by Tesla.
The Polestar 3 will also feature connectivity features based on Android Automotive OS, as well as high-end, safety-focused autonomous driving features, the company said. It will offer autonomous highway driving capability powered by a centralized NVIDIA DRIVE processor with integrated LiDAR from Polestar's technology partner Luminar. It will be one of the world's first EV's equipped with lidar during production to support autonomous driving functions.
Following the Polestar 3 will be the Polestar 4 in 2023. It will be a smaller electric performance SUV coupe.
In 2024, the company will launch the Polestar 5 performance sedan which is based on Polestar's Precept concept. The flagship electric sedan will feature a dual-electric motor setup and 800-volt system architecture. Polestar is targeting a combined output of 884 horsepower and 664 pound-feet of torque for the Polestar 5.
Two weeks ago, Polestar confirmed plans to put its electric roadster concept into production. The production version of the battery-powered sportscar car is expected to launch in 2026 as the "Polestar 6".
The concept EV was first unveiled in Los Angeles in March as the Polestar O2 and was intended to showcase Polestar's vision for future sports cars. At the time, Polestar said that the O2 hard-top convertible "redefines sports roadsters for the electric age."
Polestar was able to take the classic look of iconic roadsters of the past and incorporate the design elements into a modern, fully-electric roadster.
Polestar will share its Q3 2022 financial results on Nov 11, 2022.
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