Polestar plans to adjust its business plan to meet its goal of achieving cash flow breakeven by the end of 2025.
By adapting their business plans, manufacturers can mitigate the impact of import tariffs and pricing pressures in global EV markets, including China.
Polestar CEO Thomas Ingenlath said: “Production of the Polestar 3 in South Carolina is scheduled to begin in late summer, while production of the Polestar 4 is expected to begin in Korea in late 2025, diversifying our manufacturing base and mitigating the impact of the announced tariffs.”
For the three months ended March 31, 2024, revenue decreased 36% due to lower global vehicle sales, higher discounts due to inventory management measures, and revenue recognition on vehicle sales to a Chinese joint venture.
Polestar reported an 80% increase in global shipments in the second quarter, with sales momentum having a positive impact on inventory levels and cash flow.
“We continue to have strong momentum as we move into the second half of the year,” said Ingenlath. “Our two new SUVs have received fantastic media reviews around the world, our first test drive slots have been sold out, and additional slots are filling up quickly.”
“We expect significant revenue improvement in the second quarter and are confident in our performance in the second half of the year.
“Looking further ahead, model expansion and expanding market presence will be a key growth driver for our company, with seven new market launches planned through 2025.
Polestar is expanding its retail footprint as part of its move to a non-authorized dealer sales model across Europe.
Sweden and Norway switched to a non-authorized dealer sales model in June, with other major European markets due to follow later this year.
