Polestar Reports First Profitable Quarter In Its History

Swedish electric car maker Polestar has hit a significant milestone in its history as it has reported its first profitable quarter. In 2022, it has set itself a goal of achieving 50,000 deliveries but before that in its Q3 earnings, it revealed that this was its first profitable quarter since it went public earlier in the year. Polestar of course is backed by Volvo and Chinese carmaker Geely. By October it had managed to deliver 30,424 cars with 9,215 being delivered in October alone.

Polestar has aggressively pursued cost-cutting measures and at the same time, it has witnessed rising demand for its vehicles. While this has happened other fledgling electric car makers have struggled with supply chain issues, and production problems and have generally had higher input costs than they predicted. Rivian for example lost over $1.7 billion in the third quarter of 2022.

Polestar has also closed deals with car rental services will Hertz which has ordered 65,000 electric vehicles from the Swedish firm. In 2021, Polestar had already delivered 29,000 cars to Hertz so this deal comes on top of the existing arrangement.

Polestar also debuted its first electric SUV the Polestar 3 which also promises almost 500 km of range as per the European WLTP standard.

“We are a real [electric] car company, we are in production, we are putting cars on the road today, and we are delivering on our ambitious growth plan,” said Polestar CEO Thomas Ingenlath on the earnings.

Ingenlath believes its Q4 will be its most productive one as it anticipates another 20,000 deliveries. It has expanded its presence to 27 markets. Its Polestar 3 SUV will launch in 2023, followed by the Polestar 5 sport GT in 2024. It even has plans for a roadster called the Polestar 6 in 2026.