Polestar (PSNY) reports weaker Q2 deliveries following CEO’s sudden departure

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Polestar (PSNY) stock is up over 15% on Thursday despite reporting fewer Q2 deliveries than last year. With a new CEO taking over and two new electric SUVs hitting the market, the Swedish EV brand expects things around. Quickly.

Polestar sees Q2 deliveries slip as CEO departs

Although Polestar’s second-quarter deliveries were up from Q1, they were still lower than last year. Polestar delivered 13,150 vehicles in Q2, up 84% from the first quarter.

Despite the quarterly growth, Polestar delivered 16% fewer vehicles between April and June than the 15,765 handed over in 2023.

In the first half of 2024, Polestar delivered 20,371 cars, down 27% from last year (27,841). Polestar said the lower car sales were primarily because of the absence of Hertz. As a result, Polestar’s revenue fell 26% in Q2 to $918 million.

Polestar posted a $541 million net loss in the first half of the year, up 59% from the $341 million net loss in 1H 2023. As of the end of June, Polestar had $669 million in cash and equivalents.

Despite the lower deliveries, Polestar said it’s seeing “strong momentum, especially in the US, Norway, and Germany.”

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Polestar 3 (Source: Polestar)

Entering the next growth stage

Polestar recently delivered its first Polestar 4 model in Europe last week. The new model is its second electric SUV launched in Europe this summer, following the Polestar 3.

In the US, Polestar built its first electric SUV, the Polestar 3, earlier this month. The Polestar 3 starts at $73,400, while the Polestar 4 will start at $56,300. Polestar 3 buyers will begin receiving their electric SUVs in the coming weeks, while Polestar 4 deliveries will kick off later this year.

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Polestar delivers first Polestar 4 models in Europe (Source: Polestar)

Polestar’s new electric SUVs will rival premium brands like the new Porsche Macan EV and Tesla Model Y.

The report comes a day after Polestar announced CEO Thomas Ingenlath is leaving the company. Ingenlath will be replaced with former Opel, VinFast (VFS), and Nikola (NKLA) CEO Michael Lohscheller. The changes go into effect October 1, 2024.

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US-made Polestar 3 electric SUV (Source: Polestar)

Winfried Vahland, Polestar’s incoming Chairman, said that Lohscheller “is the ideal leader to guide Polestar into its next chapter.”

Vahland added that Polestar’s (and Volvo’s) owner, Geely, is still “deeply committed” to its success and growth.

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Polestar (PSNY) stock chart August 2023 to August 2024 (Source: TradingView)

Polestar aims to sell over 155,000 vehicles next year, a massive jump from the roughly 55,000 sold in 2023.

Polestar’s stock is up 15% on Thursday as it aims to ramp up sales. However, share prices are still down 50% in 2024 and 70% over the past year.

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