Polestar Revenues nearly double, but losses almost double too

Swedish-based Electric vehicle manufacturer Polestar Automotive Holding ($PSNY) has stated that half year revenue has almost doubled for 2022. This is due to increased demand for their new fastback EV, the Polestar 2. Polestar is also tracking on price increases due to material costs continuing to rise.

"We continue to have a very strong order book," Chief Financial Officer Johan Malmqvist told Reuters. "In regards to inflationary pressures, we have increased prices and that is something that we are closely monitoring to see if there's a need to take additional actions to protect our margins." – Reuters

The new EV company was selling automobiles in 25 countries as of the end of June. This is up from 19 in the previous year. They are reporting sales of $1.04 billion for the last six months, which is up from $534.8 million the previous year. The business declared a $372.3 million non-cash charge linked to its Nasdaq listing.

Polestar's Chief Financial Officer, Johan Malmqvist, stated that the business concluded the first half with $1.4 billion in cash. This can be attributed to the delivery of about 125% more automobiles in the first six months of the year, up from 9,510 in the same period last year. Polestar is also still projecting a full-year target of 50,000 electric vehicles (EVs) delivered.

Polestar joined the Nasdaq in June after a merger and has entered new markets this year. However, in doing so has come at a cost, with the company reporting a net loss of $502.7 million for the period from January to June, up from a loss of $368.2 million in the same period last year.

While demand for EVs surges and price for materials continues to rise, manufacturers are eyeing price increases amid supply chain issues and production delays. Because consumer demand has remained strong, several automakers have raised vehicle pricing, but others are concerned that high inflation and economic uncertainties may dampen sales sooner or later.

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