Polestar Electric Vehicle Sales Decline by 40% in Q1 2024 for Second Consecutive Quarter.

Polestar EV Sales Are Down 40% Again In Q1 2024

Polestar reported that it delivered approximately 7,200 Electric cars globally in the first quarter of 2024. This was a decrease of about 40% compared to the previous year, marking it as one of the weakest quarters in recent history.

The deliveries included 1,200 units of the new Polestar 4 model sold in China, with the remaining 6,000 units attributed to the Polestar 2 model. This represents a significant drop of 50% year-over-year, as in the first quarter of 2023, Polestar 2 sales exceeded 12,000 units.

Despite the decline in sales volume, Polestar’s focus remains on revenues and margins rather than sheer volume. The company describes 2024 as a transitional year towards higher-margin EV sales, with the upcoming launches of the Polestar 3, Polestar 4, and Polestar 5 models expected to drive revenue and margin progression in the second half of the year.

Polestar CEO, Thomas Ingenlath, emphasizes that 2024 will see the brand expanding its product range, shifting from a singular car brand to offering two luxury SUVs in the latter half of the year. The positive reviews from global media test drives of the Polestar 3 and Polestar 4 models reinforce the brand’s growth and dynamic global strategy, setting the stage for achieving 2025 targets.

In terms of sales figures, Polestar sold approximately 53,720 units of the Polestar 2 and 880 units of the Polestar 4 in the entirety of 2023, reflecting a 6% increase from the previous year. However, these results fell short of the company’s initial and revised targets for the year.

Looking ahead, Polestar’s 2025 global EV sales target stands at 155,000-165,000 units across its Polestar 2, 3, 4, and 5 models. The company has also made strategic developments, securing new funding and clarifying its ownership structure to support future growth.

As Polestar continues to expand its electric vehicle lineup and global presence, the brand’s outlook for 2024 and beyond remains optimistic despite the challenges faced in the previous quarters.