Polestar announced record sales for the first four months of 2022, but also cut its sales plan to 2022 due to slow sales in China.
In the first four months of the year, car sales more than doubled to about 13,600, and the company’s orders more than tripled to nearly 23,000 compared to the same period in 2021.
During this period, Polestar increased its global presence to 23 markets compared to 19 at the end of 2021, allowing the company to reach its target in 30 markets in total by the end of 2023. New markets in the Middle East and Europe will soon be joined by Spain and Portugal. It is planned to start operation in Israel and Italy later in 2022.
In addition, Polestar has announced a global partnership with car rental company Hertz to supply 65,000 vehicles over the next five years.
Polestar also said it faces supply chain constraints that continue to challenge the entire automotive industry. In addition, as a result of prolonged government blockades of COVID-19 in China in the first half of 2022, Polestar has announced a reduction in car sales to customers, which it will be able to deliver in 2022 from 65,000 to about 50,000.
It says the 100% reduction by 2022 is due to the blockade in China. Polestar, along with its partners Volvo Cars and Geely, said it continues to actively address these current supply chain issues, as it did in 2021, when the company delivered about 29,000 vehicles. Thanks to the implementation of a rapid response plan, including the accelerated introduction of a second change of production at the factory, Polestar plans to recoup some of the production losses it suffered later this year, and remains confident that it will reach planned sales by 2023. until 2025.
“We have promised growth, and we are keeping that promise,” says Thomas Ingenlat, CEO of Polestar.
“The fundamentals that drive the growth of electric car sales remain in place, and the momentum is stronger than the uncertainty we are witnessing now. Any short- and medium-term economic effects have not diminished our goal of selling 290,000 cars in 2025 – 10 times more than we sold in 2021, ”continues Thomas Ingenlat.
“We believe our future growth will further accelerate our entry into the lucrative SUV market later this year with the world premiere in October of the long-awaited Polestar 3 electric SUV. Polestar 3, to be produced in the US and China, will stand out among other SUVs and increase our strong growth trajectory to take us to the next stage. ”
The SUV market is one of the highest growth segments and margins in the automotive industry, especially in the United States. Customers should be able to order Polestar 3 on the day of its premiere in October.
Polestar intends to put on Nasdaq the proposed business combination with Gores Guggenheim, Inc., which is expected to close in the first half of 2022.