Polestar is rocketing to profitability.
Profitability seems to be a nebulous concept that a lot of EV manufacturers and startups alike have struggled to reach. Polestar, however, seems to be on the right track. The company’s Q3 results have been posted; this is the smallest loss the company has had to date.
In an earnings call this Friday, the brand stated that it’s doubled its revenue, narrowing the operating loss significantly compared to last year. The brand generated $1.48 billion in revenue and expects to hit $2.2 billion by the end of the year, an increase of 80% compared to the previous year. In all, the company is only reporting an operating loss of $196 million, down from last year’s loss of $292 million.
This is in part thanks to the 30,424 vehicles delivered by Q3, putting the brand on track to hit its 50,000 unit goal by the end of the year. Polestar wants to continue to streamline production, and tighten up operations, so the brand can finally turn a profit in the near future.
Likely, the Polestar 3’s bigger form factor and higher price should help Polestar generate more revenue. Currently, Polestar’s numbers have been generated off its two models, a PHEV Coupe, and an electric sedan. Given that SUVs are more popular and profitable, the Polestar 3 should see bigger sales than the Polestar 2.
Polestar’s healthier financial numbers triggered a boost in its stock price, stock rose nearly 20% after the announcement.
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