Polestar, the Swedish electric vehicle (EV) manufacturer, recently released its latest financial report, revealing that the company has successfully reduced its annual net losses by almost 50% in the last year due to a surge in revenue. This puts Polestar ahead of other EV startups that are struggling to maintain their growth trajectory and improve their financial situation.
Polestar reported an 84% YoY increase in revenue for 2022, reaching approximately $2.5 billion, and surpassed its goal of delivering 50,000 vehicles. With the help of massive year to year increase in the revenue, net loss for the year decreased to $466 million from over $1 billion in 2021.
The adjusted operating loss narrowed by 8% to $914 million, while the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 4.8% to $759 million. The company improved its cash position to $973.9 million to end last year, up about 29% from a year earlier.
Polestar’s CEO, Thomas Ingenlath, stated that the company’s performance in 2022 will lay the foundation for a new phase of growth. The company aims to increase car deliveries by almost 60%, reaching around 80,000 cars. According to Ingenlath, 2022 was an exciting year for Polestar as the company transitions from having only one product to three by the end of the year.
Polestar anticipates that for the year 2023, its gross margin will be similar to the 4.9% it recorded in 2022. However, as the year progresses, the market expects that the combination of higher sales volume and favorable product mix will drive an improvement in margins. This positive development is expected to enhance the company’s financial stability and pave the way for further innovation and commercial success in its electric vehicle offerings.
According to reports, Polestar intends to secure additional capital either by issuing stocks or through debt instruments. Thanks to its recent positive financial performance and progress in reducing losses, Polestar is well positioned to obtain the necessary funding in the current market environment. However, given the mixed performance of other startups operating in the electric vehicle and car manufacturing space, some investors may remain cautious and uncertain.
About Polestar –
Polestar, the Swedish electric vehicle manufacturer, has made waves in the industry since its founding in 2017 as a joint venture between Volvo Cars and Geely Holding. The company, which is headquartered in Gothenburg, Sweden, has gained recognition for its luxury electric vehicles, including the Polestar 1, 2, and upcoming Polestar 3 SUV. Over the past few years Polestar has received positive reviews for its vehicles’ design and performance, positioning the company as a serious competitor in the industry.