Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
October 07, 2022 09:38 AM

Polestar warns slow recovery from China lockdown dragged on results

Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Polestar 2 black 2022

    Production of the Polestar 2 has been hit by COVID lockdowns in China.

    Polestar said supply issues that lingered after China’s COVID-19 lockdowns earlier this year will weigh on results the electric-car maker is releasing next month, though it’s sticking with its full-year deliveries target.

    The Volvo plant in Luqiao, China, that produces the Polestar 2 was hamstrung or stopped entirely for almost eight weeks in the spring, and the company is still scrambling to get enough computer chips and other essential parts.

    Polestar handed over just 9,215 of those sedans to buyers during the quarter ended Sept. 30. The company will need to more than double that figure this quarter to reach its 50,000-vehicle target for the year, as it’s delivered 30,400 so far.

    “We basically have doubled output,” CEO Thomas Ingenlath said in an interview. “The cars are produced, the customers are waiting, the only thing left is that we deliver.”

    Polestar’s shares have roughly halved since the company went public in New York in June in the biggest climate-technology SPAC deal during the first half.

    Appetite to invest in startups has waned since then because of record inflation, rising interest rates and a worsening economic outlook. While drivers seem keen on the Polestar 2, the company may need to tap its main investors Volvo and Zhejiang Geely Holding Group for more cash, Bernstein analysts said in June.

    Polestar is evaluating funding options including both debt and equity, the CEO said.
     
    On the bright side, demand is strong. Every car Polestar will make this year has already been sold, though that is somewhat common across the industry as customers switch to EVs faster than many auto executives expected.

    Polestar’s queue also lengthened substantially in April, when Hertz ordered 65,000 cars for its rental fleet at an undisclosed price.
    Ingenlath said Polestar, which is targeting around 290,000 EV sales by 2025, is experiencing “robust demand.”

    Next week, the manufacturer will unveil the Polestar 3, which will give the manufacturer a presence in the lucrative SUV segment.

    It’s the first model Polestar developed from scratch, without drawing significantly on parts and engineering from Volvo.

    Ingenlath said the Polestar 3 will be sportier than Tesla’s  Model Y, likening it to the Porsche Cayenne. “I mean that type of aspirational car,” he said.

    The Polestar 3 will be made both in China and South Carolina; the 2 is only made in China. While producing the model in the US will help its standing with respect to tax credits included in the recently passed Inflation Reduction Act, the company said it cannot confirm whether the vehicle will meet battery material and component sourcing requirements to be eligible for the full $7,500 tax credit.

    Polestar, which counted actor Leonardo DiCaprio as an early investor, last month said its operating loss more than doubled in the first half after the cost of expansion and spooling up a retail network washed out gains from its first wave of sedan sales.

    The company is scheduled to report third-quarter results on Nov. 1.

    Related Article
    Polestar 3 crossover to debut Oct. 12
    Polestar will turn O2 concept into next halo car
    DAILY NEWSLETTER: Sign up and get the top news of the day in Europe every business weekday.
    RECOMMENDED FOR YOU
    New Toyota CEO Koji Sato faces big challenges in critical new era
    Recommended for You
    satoandakio.jpg
    New Toyota CEO Koji Sato faces big challenges in critical new era
    Tesla Model 3 red web_0.jpg
    UK has concerns over U.S. green subsidy act, finance minister says
    Renault Douai_Plant
    Renault will offer workers 7.5% pay increase, report says
    Capgemini Invent Head on automotive takeaways from CES 2023
    Sponsored Content: Capgemini Invent Head on automotive takeaways from CES 2023
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us