Swedish EV maker Polestar (PSNY) mentioned it expects to hit the decrease finish of its 2023 supply goal on Wednesday. Regardless of the decrease expectations, Polestar says new EV launches will drive up demand. Its first electrical SUV coupe, the Polestar 4, begins manufacturing subsequent week.

Polestar lowers 2023 supply aim

Polestar delivered 13,976 autos within the third quarter, up 51% year-over-year. Nonetheless, the quantity is down from 15,800 within the second quarter.

The YOY progress comes amid the Polestar 2 rollout, together with the lately launched upgraded 2024 mannequin.

Polestar expects the higher-priced mannequin to assist enhance fashions going into the tip of the 12 months. Though greater deliveries pushed income as much as $367.7 million (+25%) in Q3, elevated prices led to gross earnings slipping 63% to $36.3 million.

Increased bills within the quarter led to an working lack of $261 million, up 33% in comparison with final 12 months. In the meantime, gross earnings fell to three.6% from 4.1% final 12 months.

Polestar expects to hit the decrease finish of its 2023 supply goal with round 60,000 autos. The EV maker had already slashed its goal in Might from 80,000 to between 60,000-70,000.

As a result of decrease supply expectations, Polestar says gross margins will likely be round 2% for the 12 months, down from 4%.

The corporate mentioned it was slicing prices to enhance effectivity. Polestar had $951.1 million in money on the finish of September. Nonetheless, it secured one other $450 million in loans from its high two buyers, Volvo and Geely.

New EV fashions to speed up demand

Regardless of the decrease near-term expectations, Polestar expects the launch of recent electrical fashions to drive up demand.

The corporate’s first electrical SUV coupe, the Polestar 4, will start manufacturing subsequent week. Polestar will begin delivering the brand new EV to prospects subsequent month.

In the meantime, the Polestar 3 electrical SUV is “on monitor” to start manufacturing in China in early 2024 and over the summer season within the US. The corporate mentioned its electrical SUV lately accomplished scorching climate testing within the UAE.

The Polestar 3 is “higher positioned” for the US market, in accordance with CEO Thomas Ingenlath. Polestar’s electrical SUV (launch version) will begin at $83,900 within the US with as much as 300 miles vary.

Powered by the identical platform as the brand new Volvo EX90, the Polestar 3 will likely be accessible in two trims – a long-range twin motor and a efficiency pack model. Each will use a 400V battery with 111 kWh capability.

Polestar will proceed growing the model, specializing in rising quantity and profitability. With 4 fashions anticipated (together with the Polestar 5), the EV maker goals to ship round 155,000-165,000 autos.

By mid-decade, Polestar expects gross revenue margins within the excessive teenagers. The corporate says an improved providing of autos and extra measures will assist increase profitability.

Polestar additionally teased a brand new plant on the corporate’s earnings name that may not be in China however didn’t specify the place.

Electrek’s Take

With one absolutely electrical car at the moment, Polestar expects to hit the decrease finish of its supply goal this 12 months.

In the meantime, the EV maker expects new launches, together with the Polestar 3 and 4, to extend demand. So is it an EV demand drawback, or is it that Polestar doesn’t have fashions in the precise segments but?

Polestar mentioned it can proceed a “targetted method” with EV fashions just like the Polestar 3 aligning with the US market.

Different EV makers have reported combined outcomes. Though Lucid additionally lowered its goal, Rivian raised it for the second time this 12 months. Once more, is it the market, or is it the fashions?